Amgen's Stock Bounces Back 3.6% After $12 Billion Loss Amid Safety Concerns Over Obesity Drug
1min read Recent events have placed Amgen Inc. (AMGN) in the spotlight, as its shares experienced a significant two-day decline, reaching a new low for the first time since May 2024. The controversy stems from a concealed Excel spreadsheet linked to a study published in February in the journal Nature Metabolism, which raised concerns about the safety of Amgen's experimental obesity drug, MariTide. Cantor Fitzgerald analysts noted that hidden data revealed a potential decrease in bone density in patients receiving the highest dosage of MariTide in a Phase I clinical trial.
The trial involved only four patients in the highest dosage group, where a single participant primarily drove the average bone density decrease. Despite the limited sample size, the market reacted sharply, pushing Amgen's stock down by 7% on Tuesday and evaporating $12 billion in market value. This reaction underscores the vulnerability of companies operating in the highly competitive weight loss sector, where transparency and drug safety are crucial.
Amgen's global clinical development head, Narimon Honarpour, asserted at the UBS Healthcare Conference that the conclusions drawn by Cantor were based on "incomplete" and "inadvertently shared" data. The company emphasized that no evidence links MariTide to changes in bone density, maintaining their confidence in the drug's safety profile and commercial potential. Analysts are divided, with some downplaying the significance of these concerns due to the ongoing Phase II trial and planned larger-scale trials, indicating results may provide a more definitive safety assessment.
Amgen remains a company with substantial growth prospects. The anticipated release of Phase II trial results later this year will be decisive in assessing MariTide's viability as a competitive entrant in the burgeoning $150 billion global weight loss market. The drug's unique monthly injection regimen, with potential for more extended dosing intervals, offers a competitive edge, enhancing patient compliance over existing therapies like semaglutide and tirzepatide.
In response to the recent turmoil, Amgen's shares rebounded by 3.6% in pre-market trading on Wednesday. This recovery signals a partial restoration of investor confidence as markets digested the alleged safety signals and analysts provided perspective. The upcoming trial outcomes are pivotal, potentially restoring Amgen's momentum and reaffirming its commitment to innovation in therapeutic solutions.
The episode has also sparked a broader discussion on the transparency of clinical research data in the pharmaceutical industry. Experts advocate for a balanced approach to data disclosure, ensuring that critical information is shared with stakeholders while safeguarding commercial interests. As Amgen navigates these challenges, investors' scrutiny will likely intensify, reflecting the substantial stakes involved in the advancement of obesity treatments.