Amgen is entering the lucrative weight loss drug market with a unique strategy.

• While other drugmakers are intensely competing to create the next successful weight loss medication, Amgen is adopting a unique strategy.
• The biotech company is testing a monthly injection that differs from Wegovy and Zepbound and seems to aid patients in maintaining their weight loss even after discontinuing it.
• The level of competition in the obesity market for Amgen remains uncertain.

The company is adopting a fresh strategy to differentiate itself from other drug manufacturers competing intensely to create the next successful weight loss medication.

An injectable treatment from Amgen, called MariTide, is being tested by the biotech company. Unlike existing injections from and other obesity medicines in development, MariTide helps people lose weight differently. Additionally, it appears that patients can maintain their weight loss even after stopping the treatment.

The company is also testing its drug for less frequent use, such as once a month, which could provide more convenience compared to the weekly medications currently available.

The weight loss drug market is currently dominated by Novo Nordisk and Eli Lilly, and it remains uncertain how competitive Amgen will be in this space as it is still early.

New competitors may enter the market, which is projected to be worth $100 billion by the end of the decade, as Goldman Sachs predicts that between 10 million and 70 million Americans will be taking weight loss drugs by 2028.

Although the data on Amgen's injectable drug is encouraging, it comes from a small, early-stage clinical trial. Additionally, the company is working on an oral medicine and other treatments for obesity, but has not shared much information about them.

Amgen will reveal initial data from a mid-stage trial on MariTide and phase one data on its obesity pill, which will provide investors and health experts with a better understanding of the drugmaker's prospects later this year.

Amgen's treatments may not be more affordable than existing weight loss medications, which typically cost around $1,000 per month.

Despite their high cost and limited insurance coverage, Wegovy from Novo Nordisk and Zepbound from Eli Lilly have garnered significant patient demand and investor interest for their new class of obesity treatments.

Other companies may have an opportunity to gain market share due to Eli Lilly and Novo Nordisk's difficulties in providing sufficient supply of their treatments.

How Amgen's treatment is different

Amgen's drug offers a new twist on weight loss.

Amgen's treatment activates a gut hormone receptor called GLP-1 to regulate a person's appetite.

Zepbound activates a second hormone receptor called GIP, while Amgen's drug blocks it. In contrast, Wegovy does not target GIP, but instead suppresses appetite like GLP-1 and may also improve how the body breaks down sugar and fat.

Genetics research suggests that blocking the GIP receptor is linked to lower fat mass and body weight, which is why Amgen has decided to tamp down GIP activity instead of boosting it.

The treatment helped patients with obesity lose up to 22.5% of their weight after 72 weeks in a late-stage trial.

But Amgen's MartiTide also was effective in a small, early-stage study.

On average, patients who received the highest dose of Amgen's drug, 420 milligrams monthly, lost 14.5% of their body weight in just 12 weeks, as shown in the phase one trial published last month in Nature Metabolism.

Researchers are debating the effectiveness of blocking and activating GIP for weight loss, with both methods showing promising results.

Dr. Caroline Apovian, director of the Center for Weight Management and Wellness at Brigham and Women's Hospital, stated that one theory is that activating the GIP receptor repeatedly, as Zepbound does, leads to the body regulating itself and controlling GIP activity.

Blocking GIP receptor activity decreases GIP activity overall, which is similar to what Amgen's drug does. However, Apovian warned that "none of this is proven" and more data is required.

The drug could result in longer-lasting weight loss

Early-stage trial data suggests that Amgen's treatment may be more effective at maintaining weight loss than competitors, despite patients taking it less frequently.

The Amgen study included 110 patients with obesity but not diabetes. Patients in one group received a single dose of the drug and were monitored for 150 days, while the second group received a dose every four weeks for three months.

The study suggests that a single injection of MariTide can cause a prolonged weight loss effect, with patients losing up to 8.2% of their body weight after 92 days.

Patients in the group who received multiple doses of the drug maintained their maximum weight loss until approximately two months after their final dose. However, their weight gradually returned after that, and they were still 11.2% lighter five months after their last dose.

Dr. Holly Lofton, director of the Weight Management Program at NYU Langone Health and an obesity medicine physician, stated that losing 14.5% weight with Amgen's drug is significant, but it's important to study the treatment in a larger group of people.

In contrast to the sustained weight loss observed in Amgen's study, patients in clinical trials on Zepbound and Wegovy saw their weight rebound sooner after stopping the injections.

Once a month or even less frequent dosing

The frequency of Amgen's drug distinguishes it from other options; Wegovy and Zepbound require weekly doses, while MariTide is taken monthly.

The study found that patients experienced sustained weight loss regardless of whether they received a single injection or multiple shots of Amgen's drug, which was administered monthly.

The monoclonal antibody in Amgen's treatment allows it to remain in the body for a longer duration compared to current therapies like Wegovy and Zepbound, the authors noted.

William Blair & Company analyst Matt Phipps stated on CNBC that Amgen's MariTide has the advantage of lasting a longer period of time. Even if a high dose is administered, drug exposure in the body will still be present for at least a month or two, indicating that it is not necessary to take it every week.

Some patients may prefer a monthly shot like Amgen's MariTide for a disease that will likely require chronic treatment, as Phipps stated that people typically do not want to receive injections frequently.

The patient's decision to choose Amgen's drug may depend on whether its weight loss and side effects are comparable to those of the weekly injections.

Amgen's phase two trial is investigating if patients can take its drug less often than monthly.

Phase two trial will bring more clarity

Amgen's phase two study on 600 patients will provide more clarity on MariTide's competitiveness against Wegovy and Zepbound. The company is investigating the optimal dose strength and schedule for patients and anticipates releasing initial trial results this year.

The phase two trial may answer questions about how patients respond to the treatment at varying dosage levels.

The 52-week study is evaluating 11 patient groups with varying dosing levels and regimens, including starting some patients with a lower dose of a drug and gradually increasing it until they reach a higher target dose.

Phipps stated that increasing the dose of MariTide could alleviate side effects experienced by some patients during the phase one trial.

The safety and side effects of Amgen's drug were comparable to other GLP-1 medications. The most common side effects were nausea and vomiting, which typically lasted for around 72 hours.

No other patients in any of the different dosing groups stopped taking the drug due to adverse events, according to Amgen Chief Medical Officer Paul Burton, who said that four out of eight patients in the group receiving the highest dose of the treatment withdrew before getting a second shot due to mild gastrointestinal issues, as per a study.

Phipps from William Blair & Company stated that it is premature to conclude that the drug won't be accepted by patients based solely on phase one data.

Amgen's phase two trial will also investigate the drug's effectiveness beyond 52 weeks in terms of weight loss.