Amgen's Stock Plunge: Market Missteps or Growth Opportunity?

Amgen's stock took a nosedive on Nov. 26, dropping 12.3% at one point in a single trading session. The biotech giant's shares tumbled following disappointing results from a Phase 2 trial of its experimental obesity drug, MariTide. Analysts had high expectations for the drug, which aims to compete with Eli Lilly's Zepbound and Novo Nordisk's Wegovy. However, MariTide's weight loss results of up to 20% over one year fell short of expectations, raising concerns about its efficacy and tolerability.

The market's initial negative reaction to Amgen's MariTide data reflects concerns about its competitiveness compared to existing obesity treatments. While MariTide showed promising results, it underperformed Zepbound's 24% and Wegovy's 15% weight loss reductions. Additionally, concerns about side effects and patient dropouts from the trial have further dampened investor enthusiasm.

Despite the market's temporary disapproval, MariTide's potential to address unmet needs in obesity treatment should not be overlooked. Its convenience, with monthly dosing instead of weekly, could make it an attractive alternative for patients seeking weight maintenance or those intolerant to existing drugs. Moreover, Amgen's upcoming Phase 3 trials could refine MariTide's dosage and optimize its efficacy and tolerability.

Amgen's recent stock decline may present an opportunity for long-term investors, as the company's core business remains strong. Its diverse portfolio of approved drugs, including Repatha and Prolia, has seen significant growth. Additionally, Amgen has a robust pipeline of promising drug candidates, with over a dozen significant milestones expected in 2024.


A strategic partnership or acquisition of Amgen by another biotech company, such as Eli Lilly or Novo Nordisk, could bolster Amgen's obesity drug pipeline and strengthen its competitive position. Such a move could also benefit the acquiring company by providing access to Amgen's extensive R&D capabilities and stable of approved drugs.

In conclusion, Amgen's recent stock decline following MariTide's mixed results should not deter long-term investors. The company's strong core business and promising pipeline, combined with MariTide's potential to address unmet needs in obesity treatment, make Amgen an attractive investment opportunity. As Amgen refines MariTide's dosage and optimizes its efficacy and tolerability in Phase 3 trials, the market's perception of the drug and Amgen's stock may shift accordingly.