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THOUSAND OAKS, Calif. - Amgen (NASDAQ:AMGN), a prominent biotech player with a market capitalization of $152.7 billion and impressive 69% gross profit margins, revealed Monday that its experimental obesity treatment MariTide demonstrated significant weight reduction in a 52-week Phase 2 study, with participants achieving up to 20% average weight loss without reaching a plateau. According to InvestingPro analysis, the company’s strong financial health and current undervaluation suggest potential for further growth.
The monthly or less frequently administered drug showed weight loss of approximately 20% in people with obesity without Type 2 diabetes and about 17% in those with both conditions, compared to approximately 2.6% and 1.4% in respective placebo groups. This development comes as Amgen demonstrates robust revenue growth of 15.6% over the last twelve months, reflecting its continued innovation in the biotechnology sector.
The study also found MariTide delivered improvements in cardiometabolic measures including waist circumference, blood pressure, and select lipid parameters. For participants with Type 2 diabetes, the treatment reduced hemoglobin A1c by up to 2.2%.
Gastrointestinal side effects were the most commonly reported adverse events, consistent with other GLP-1 class medications. These effects were primarily mild to moderate and occurred mainly during initial dosing. Lower starting doses with gradual increases substantially improved tolerability without compromising effectiveness.
"In this Phase 2 study, participants living with obesity treated with MariTide had substantial weight reduction at 52 weeks without reaching a weight plateau," said Ania Jastreboff, professor at Yale School of Medicine and director of the Y-Weight Yale Obesity Research Center.
The company is currently enrolling participants in its Phase 3 MARITIME program to further evaluate MariTide’s safety and efficacy. Amgen also plans to initiate additional Phase 3 studies in 2025 for cardiovascular disease, heart failure, and obstructive sleep apnea. For detailed analysis of Amgen’s financial outlook and growth potential, investors can access comprehensive research reports and additional ProTips through InvestingPro, which offers exclusive insights into the company’s valuation and future prospects.
MariTide is a bispecific peptide-antibody conjugate that simultaneously activates GLP-1 receptors while inhibiting glucose-dependent insulinotropic polypeptide receptors, a dual mechanism that preclinical studies suggest produces stronger weight loss effects than targeting either pathway alone.
The information is based on a press release statement from Amgen.
In other recent news, Amgen Inc. held its Annual Meeting, where shareholders approved several key issues, including the election of directors and executive compensation. The ratification of Ernst & Young LLP as the company’s independent accountants for 2025 was also confirmed. In a separate development, Piper Sandler adjusted its price target for Amgen to $328, noting an increase in research and development spending. Despite this adjustment, Piper Sandler maintains an Overweight rating, citing strong growth in Amgen’s products like Repatha and Tezspire. Additionally, S&P Global Ratings revised Amgen’s outlook from negative to stable due to effective debt reduction, post-Horizon acquisition. Erste Group, however, downgraded Amgen’s stock from Buy to Hold, citing anticipated slowdowns in revenue and profit growth for 2025 and 2026. Meanwhile, Jefferies downgraded Vigil Neuroscience from Buy to Hold, adjusting the price target to $8, amidst its acquisition by Sanofi. This acquisition is expected to enhance Sanofi’s portfolio with Vigil’s innovative Alzheimer’s treatment approach. These developments reflect the ongoing strategic and financial shifts within these companies.
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