Amgen (AMGN.US) denies bone safety issues with weight loss drug MariTide
1min read Amgen (AMGN.US) on Wednesday clarified that there was no link between its experimental weight loss drug and changes in bone density, a day after concerns about the issue wiped more than $12bn off the company's market value.
It is understood that Cantor Fitzgerald analysts had evaluated early data on Amgen's MariTide and found that the drug caused a drop in bone density. Shares of the biopharmaceutical company fell about 7 per cent on Tuesday as a result.
Amgen responded by saying: "The results from the first phase of the study did not show any bone safety issues and did not change our belief in the promise of MariTide." It added that it was looking forward to data from the mid-stage study later this year.
Amgen's shares rose more than 2 per cent before the US market opened on Wednesday after the company's statement.
The Cantor analysts said they had found changes in bone density when they reviewed supplemental data published alongside February's results.
But at least four analysts said the concerns were being exaggerated, especially given the company's ongoing mid-stage study and plans to invest in a larger late-stage trial.
Christopher Raymond, an analyst at Piper Sandler, said in a note that new safety signals would certainly raise the radar for any drug, but Amgen had a much better understanding of MariTide than Wall Street.
It is understood that MariTide activates the GLP-1 hormone, which is associated with feelings of fullness, similar to the blockbuster weight loss drugs Wegovy from Novo Nordisk and Zepbound from Eli Lilly.
But MariTide differs in that it blocks the activity of another gut hormone called GIP, which is associated with fat storage and metabolic regulation.
Amgen hopes that the different approach will allow it to achieve weight loss more quickly and reduce the need for frequent injections compared with Wegovy and Zepbound.