Amgen Stock Missiles; Biotech is ‘very encouraged’ with its research into obesity

Amgen (AMGNShares rose late Thursday after the biotech giant said it is “very encouraged” with the interim results of its obesity treatment, MariTide.

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The company did not provide figures from its study of MariTide in obese adults. But it said it is actively planning phase 3 studies. This puts Amgen on track to potentially rival weight loss blockbusters Eli Lilly (LLY) And Novo Nordisk (NVO).

In addition to the MariTide update, Amgen says it has completed a Phase 1 study of its other anti-obesity drug, a small molecule drug known as AMG 786.

If successful, Amgen would rival Novo’s Wegovy and Lilly’s Zepbound. However, both struggle with their own success. Wegovy’s revenue nearly doubled year-over-year in the first quarter, but missed sales forecasts. Zepbound, on the other hand, exceeded predictions. But Lilly’s Mounjaro, which uses the same chemical backbone, missed.

Experts say there is room for more players in the obesity treatment market. And Amgen uses a different mechanism to promote weight loss. In after-hours trading, Amgen shares rose 13.2% to 315.20.

Amgen Stock: Sales are up to standard, profits are correct

Overall, Amgen’s revenue rose 22% to $7.45 billion, in line with analyst expectations. Adjusted earnings fell 1% to $3.96 per share, which beat expectations at $3.88, according to FactSet.

Revenue from Amgen’s biggest moneymaker, osteoporosis treatment Prolia, reached $999 million, up 8% year over year. That narrowly exceeded projections of $998 million. Promisingly, sales of cholesterol treatment Repatha rose 33% to $517 million, crushing demand at $451 million.

The best growth came from Tezspire, Amgen’s treatment for severe asthma. Revenue shot up 80% to $173 million. But that fell short of Wall Street’s projection of $189 million, according to FactSet.

Amgen lowered its adjusted earnings outlook for the year and now expects $19 to $20.20 per share. The midpoint of the outlook surpassed analyst forecasts of $19.47. The company raised the lower end of its sales outlook and is now calling for $32.5 billion to $33.8 billion, compared to analysts’ estimate of $32.97 billion.

Amgen shares were just above the 50-day moving average on Thursday.

Follow Allison Gatlin on X, the platform formerly known as Twitter, at @IBD_AGatlin.

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