Wall Street Ponders Amgen's Weight Loss Drug Data: Healthy Returns

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Last week, Wall Street analyzed crucial information about an experimental weight loss injection, which could be a rival in the lucrative obesity drug industry.

Although some analysts expressed optimism about the initial mid-stage trial results, concerns were raised about the drug's effectiveness and patients' tolerance of it.

The full data from the study, including the results from the second part of the trial examining the duration of MariTide's weight loss, is likely to provide more answers.

Last Tuesday, shares of Amgen plummeted more than 11% as the markets opened, despite the company's drug results being slightly below Wall Street's expectations.

The phase two trial of MariTide showed that patients with obesity lost an average of 20% of their weight after a year, with no plateau. Prior to the data, several analysts predicted that MariTide would achieve a weight loss of at least 20% in the trial, with some hoping for up to 25%.

Based on late-stage studies, how does the new injection compare to existing injections on the market?

• 's Wegovy showed that it led to 15% weight loss over 68 weeks
• Over 72 weeks, patients lost more than 22% of their weight with the help of Zepbound.

In a note last week, BMO Capital Markets analyst Evan Seigerman stated that the stock reaction on Tuesday was due to "unrealistic expectations for % weight loss, without considering the ease of the injection's dosing."

Notably, Amgen is testing MariTide as an injection taken once a month or even less frequently, which would be far more convenient for patients to take long term than the weekly injections from Novo Nordisk and Eli Lilly.

"Amgen has been proven to be a competitor in obesity and diabetes indications through MariTide data, which demonstrates significant weight loss in both areas, according to Seigerman," said.

In the trial, MariTide aided patients in losing up to 17% of their weight after a year, in addition to helping those with obesity and Type 2 diabetes.

Michael Yee, a Jefferies analyst, stated in a note last week that the drug's effectiveness may improve, and the 20% weight loss achieved after one year without a plateau may increase to 25% within 18 months. In comparison, Zepbound's weight loss mostly plateaued after a year.

The most frequent side effects of MariTide were gastrointestinal, including nausea, vomiting, and constipation. Nausea and vomiting were typically mild and linked to the initial dose of MariTide.

The incidences of nausea and vomiting were significantly reduced with dose escalation, which involves starting patients at a lower dose of MariTide and gradually increasing it over a specific time period until they reach a higher target dose.

While less than 8% of patients in groups with dose escalation discontinued treatment due to gastrointestinal side effects such as nausea and vomiting, roughly 11% stopped treatment altogether due to any adverse side effects.

In groups with dose escalation, 70% of patients experienced nausea and 40% experienced vomiting, according to Amgen.

Amgen reported that a new early-stage study showed that patients who began treatment with lower initial doses of MariTide experienced significantly reduced rates of nausea and vomiting, with about 50% of patients experiencing nausea and 20% experiencing vomiting.

Although the levels of nausea and vomiting seen for Zepbound and Wegovy are higher, Seigerman stated that the mild severity of these side effects and the isolated occurrence of events at the start of treatment provide confidence that they can be managed.

He stated that he is "encouraged by the reductions observed with dose escalations."

JPMorgan analyst Chris Schott stated in a research note last week that Amgen will investigate lower starting doses in its phase three trial for MariTide. The company believes that enhancing tolerability in the Ph3 trial is crucial to the asset's potential adoption.

David Risinger, an analyst at Leerink Partners, highlighted crucial questions that require clarification in the full trial results, specifically regarding detailed data on patient tolerance of the drug without dose escalation and weight loss data among non-diabetic patients who received the highest dose of the drug.

Rewritten sentence: Please provide any tips, suggestions, story ideas, and data to Annika at [email protected].

Latest in health-care tech: GE HealthCare to acquire Japanese drug company

GE HealthCare has announced that it will acquire the remaining 50% stake in Japanese radiopharmaceutical company Nihon Medi-Physics (NMP) from Sumitomo Chemical.

NMP, a Tokyo-based company founded in 1973, specializes in the production of radiopharmaceuticals, which are radioactive drugs used to treat certain cancers and perform imaging tests. The company operates 13 manufacturing facilities and conducts its own research and development.

The radiopharmaceuticals market is becoming increasingly competitive, with companies such as , , and Eli Lilly racing to develop them. In the U.S., two radiopharmaceuticals from Novartis, Pluvicto and Lutathera, are already available.

Last year, NMP generated approximately $183 million in revenue, as stated in the release. Prior to Monday's announcement, GE HealthCare had three seats on NMP's board of directors.

GE HealthCare's Pharmaceutical Diagnostics segment president & CEO Kevin O'Neill stated in a release that strengthening the precision care strategy in Asia and expanding the use of contrast media and medical devices in Japan, where they are already widely used for imaging procedures, will enhance the company's existing footprint in the region.

The acquisition is expected to close early next year, but its terms have not been disclosed and it is still subject to regulatory approval.

Solomon Partners advised GE HealthCare on the transaction.

GE HealthCare made several announcements during the Radiological Society of North America's 2024 annual meeting in Chicago, including the launch of a new 3D MRI research foundation model, a new SPECT/CT solution, and a new submission to the U.S. Food and Drug Administration.

Read the full release about GE HealthCare's acquisition of NMP here.

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