Welcome to Extreme Investor Network, where we bring you the latest updates and insights in the world of business news. Today, we are diving into the decision made by Amgen to halt the development of its experimental weight loss pill and shift its focus to other products in the pipeline.
Amgen, a major player in the pharmaceutical industry, announced on Thursday that it will be discontinuing the development of its oral weight loss drug in favor of advancing its injectable obesity treatment called MariTide. The move comes as the company aims to capitalize on the booming weight loss drug market, which analysts project could reach $100 billion by the end of the decade.
During an earnings call, Jay Bradner, Amgen’s chief scientific officer, expressed confidence in the ongoing midstage trial of MariTide, which has shown promising results in helping obese or overweight adults without diabetes shed excess pounds. The company plans to release initial data from the study later this year and is working with regulators to plan a late-stage trial for the treatment.
Investors reacted positively to the news, with Amgen’s shares soaring over 10% in extended trading following the announcement. The company’s strategic decision to focus on MariTide and other weight management drugs reflects its commitment to innovation and staying ahead of the competition in the rapidly evolving pharmaceutical landscape.
In addition to MariTide, Amgen also has other drugs in the pipeline for weight management, including AMG-786. By taking a different approach from existing injectable drugs on the market, Amgen aims to distinguish itself and offer patients a more effective and convenient treatment option. Clinical trial data has shown that patients given the highest dose of MariTide lost an average of 14.5% of their body weight in just 12 weeks, underscoring the potential of the drug.
Apart from its weight management initiatives, Amgen also reported strong first-quarter results that exceeded Wall Street’s expectations. The company’s revenue and adjusted earnings topped estimates, driven in part by products from the recently acquired Horizon Therapeutics. With a narrowed full-year guidance and a positive outlook for 2024, Amgen is poised for continued growth and success in the pharmaceutical industry.
Stay tuned to Extreme Investor Network for more updates on Amgen’s developments and other breaking news in the business world. Join us as we uncover investment opportunities and trends that could shape the future of the market.
