Amgen abandons experimental weight loss pill, focuses on injection.

• Amgen is abandoning its experimental weight loss pill but proceeding with an injection.
• Several drugmakers, including Amgen, are competing to enter the lucrative weight loss drug market, currently dominated by Novo Nordisk and Eli Lilly.
• Unlike other drugmakers, the company has taken a unique approach to obesity treatment.

On Thursday, the company announced that it would cease development of its experimental weight loss pill and instead focus on its injectable drug and other obesity treatment products.

Amgen's announcement is a setback in the race to enter the weight loss drug market, which is currently dominated by and is projected to be worth $100 billion by the end of the decade. However, the company has other opportunities to capture a share of the market.

Amgen's chief scientific officer, Jay Bradner, stated during an earnings call on Thursday that based on the profile of the oral drug, we will not proceed with further development. Instead, we will focus on investing in MariTide and preclinical assets in the area of obesity.

Amgen is currently conducting an ongoing midstage trial on an injectable obesity treatment called MariTide in obese or overweight adults without diabetes. The company will release initial data from this study later this year and is collaborating with regulators to plan a late-stage trial. Additionally, Amgen is planning a stage two trial on the drug for diabetes treatment.

Amgen also has other drugs in development for weight management.

Over the past year, the second weight loss pill to be discontinued by a drugmaker is AMG-786, an oral drug.

Pfizer has abandoned its twice-daily obesity pill, danuglipron, after patients struggled to tolerate it in a midstage trial. The company is now working on a once-daily version of the drug.

Amgen's experimental weight loss treatments are the main focus of investors, who are looking for a unique approach to stand out in a crowded market.

Amgen's experimental injection, similar to Wegovy and Zepbound, activates a gut hormone receptor called GLP-1 to regulate a person's appetite.

While Zepbound activates a second hormone receptor called GIP, Amgen's drug blocks it. In contrast, Wegovy does not target GIP but may improve how the body breaks down sugar and fat.

Clinical trial data suggests that Amgen's injectable treatment aids in maintaining weight loss after discontinuation. Additionally, the company is exploring the possibility of administering the drug less frequently, such as monthly, for added convenience compared to weekly medications currently available.

On average, patients who received the highest dose of Amgen's MariTide, which is 420 milligrams, lost 14.5% of their body weight in just 12 weeks, as shown in the phase one trial published in February in the journal Nature Metabolism.

Amgen's first-quarter results

On Thursday, Amgen reported first-quarter revenue and adjusted earnings that surpassed Wall Street's expectations, in part because of products from the recently acquired Horizon Therapeutics.

Based on a survey of analysts by LSEG, Amgen's first-quarter results differed from Wall Street's expectations.

• Earnings per share: $3.96 vs. $3.87 expected
• Revenue: $7.45 billion vs. $7.44 billion expected

In contrast to the previous year, Amgen reported a net loss of $113 million, or 21 cents per share, compared to a net income of $2.84 billion, or $5.28 per share.

Excluding certain items, the company reported earnings of $3.96 per share.

In the first quarter, Amgen generated $7.45 billion in revenue, representing a 22% increase compared to the same period in the previous year.

Horizon Therapeutics generated $914 million in revenue from its products, including Tepezza, which treats thyroid eye disease.

Amgen reported a 6% increase in product sales from the previous year, excluding drugs from Horizon Therapeutics. Ten of the company's products experienced double-digit volume growth during the first quarter, including cardiovascular drug Repatha, severe asthma treatment Tezspire, and Blincyto, a therapy for a specific type of blood cancer.

Amgen slightly narrowed its full-year guidance on Thursday as well.

The company's revenue forecast for 2024 is between $32.5 billion and $33.8 billion, which is slightly higher than its previous guidance of $32.4 billion to $33.8 billion.

Amgen anticipates a full-year adjusted earnings per share of $19 to $20.20, which is below its earlier forecast of $18.90 to $20.30 per share.

According to a survey conducted by LSEG, analysts anticipate full-year revenue of $32.95 billion and an adjusted profit of $19.48 per share.