Amgen scraps experimental weight reduction capsule, strikes ahead with injection

Amgen on Thursday mentioned it should cease creating its experimental weight reduction capsule and as an alternative transfer ahead with its injectable drug and different merchandise in improvement for weight problems.

The announcement is a setback for Amgen, which is amongst a number of drugmakers racing to affix the red-hot weight reduction drug area dominated by Novo Nordisk and Eli Lilly, which some analysts say may very well be price $100 billion by the tip of the last decade. However the firm has different alternatives to seize a slice of the market.

“Given the profile we have seen with [the oral drug], we won’t pursue additional improvement. As a substitute, in weight problems, we’re differentially investing in MariTide and plenty of preclinical property,” Jay Bradner, Amgen’s chief scientific officer, mentioned throughout an earnings name Thursday.

Amgen is creating an injectable weight problems therapy known as MariTide, which is an ongoing midstage trial in overweight or chubby adults with out diabetes. The corporate will launch preliminary knowledge from that research later this 12 months and mentioned it’s working with regulators to plan a late-stage trial. Amgen is planning a stage two trial on the drug in diabetes therapy as properly.

Amgen additionally has different medication in improvement for weight administration. 

The drugmaker’s oral drug, known as AMG-786, is the second weight reduction capsule to be discontinued over the previous 12 months.

Pfizer in December scrapped a twice-daily model of its weight problems capsule, danuglipron, after sufferers had a tough time tolerating the drug in a midstage trial. The corporate is now creating a once-daily model of that drug.

Traders are laser-focused on Amgen’s pipeline of experimental weight reduction therapies. Amgen hopes to face out among the many crowded discipline of potential gamers with a distinct method. 

The corporate’s experimental injection helps individuals drop extra pounds otherwise from the present injectable medication. A lot just like Novo Nordisk’s Wegovy and Eli Lilly’s Zepbound, one a part of Amgen’s therapy prompts a intestine hormone receptor known as GLP-1 to assist regulate an individual’s urge for food. 

However whereas Zepbound prompts a second hormone receptor known as GIP, Amgen’s drug blocks it. Wegovy doesn’t goal GIP, which suppresses urge for food like GLP-1, however can also enhance how the physique breaks down sugar and fats.

Amgen’s injectable therapy additionally seems to assist sufferers hold weight off after they cease taking it primarily based on some medical trial knowledge. The drugmaker can be testing its drug to be taken as soon as a month and even much less ceaselessly, which may supply extra comfort than the weekly medicines available on the market. 

Sufferers given the best dose of Amgen’s MariTide — 420 milligrams — each month misplaced 14.5% of their physique weight on common in simply 12 weeks, in line with knowledge from the section one trial revealed in February within the journal Nature Metabolism. 

Additionally on Thursday, Amgen reported first-quarter income and adjusted earnings that topped Wall Avenue’s expectations, partly as a result of merchandise from the lately acquired Horizon Therapeutics. 

Here’s what Amgen reported for the primary quarter in contrast with what Wall Avenue was anticipating, primarily based on a survey of analysts by LSEG:

• Earnings per share: $3.96 vs. $3.87 anticipated
• Income: $7.45 billion vs. $7.44 billion anticipated

Amgen posted a internet lack of $113 million, or 21 cents per share. That compares to a internet revenue of $2.84 billion, or $5.28 per share, for the year-earlier interval.

Excluding sure gadgets, the corporate reported earnings of $3.96 per share. 

Amgen booked $7.45 billion in income for the primary quarter, up 22% from the identical interval a 12 months in the past. 

That features $914 million from Horizon Therapeutics merchandise, together with thyroid eye illness therapy Tepezza. 

Excluding medication from Horizon Therapeutics, Amgen mentioned its product gross sales grew 6% from the year-earlier interval. Ten merchandise delivered double-digit quantity progress throughout the first quarter, together with cardiovascular drug Repatha, extreme bronchial asthma therapy Tezspire and Blincyto, a remedy for a sure blood most cancers.

Amgen barely narrowed its full-year steerage on Thursday as properly. 

The corporate expects 2024 income of $32.5 billion to $33.8 billion. That compares to a earlier steerage of $32.4 billion to $33.8 billion. 

Amgen expects a full-year adjusted revenue of $19 to $20.20 per share. That compares to a earlier steerage of $18.90 to $20.30 per share. 

Analysts surveyed by LSEG count on full-year income of $32.95 billion and adjusted revenue of $19.48 per share.