Wall Street mulls data on Amgen weight-loss drug

The Amgen logo is displayed in front of the Amgen headquarters in Thousand Oaks, California on May 17, 2023.

Mario Tama | Getty Images

A version of this article first appeared in CNBC's Healthy Returns newsletter, which brings the latest health news straight to your inbox. Subscribe here to receive future editions.

Wall Street is mulling over critical data released last week Amgen's experimental weight-loss injection – a potential competitor in the blockbuster obesity drug market.

Some analysts said the early results of the trial's mid-stage appear positive overall. However, they noted that there remain questions about the drug's effectiveness and patient tolerance.

We likely won't get any further answers until the company releases the full data from the study. These include results from a second part of the study, which examines how long MariTide's weight loss lasts.

Investors were initially not happy. Shares of Amgen plunged more than 11% at the market open last Tuesday as results appeared to fall slightly short of Wall Street's high expectations for the drug.

The MariTide injection helped patients with obesity lose up to 20% of their weight on average after one year without plateauing. Ahead of the data release, several analysts said they wanted MariTide to show at least 20% weight loss in the Phase 2 trial, with some hoping for as much as 25%.

Here is the comparison with the existing injections on the market based on recent studies:

• Novo Nordisk's Wegovy showed that it resulted in 15% weight loss within 68 weeks
• Eli Lilly's Zepbound helped patients lose more than 22% of their weight within 72 weeks

But in a note last week, Evan Seigerman, an analyst at BMO Capital Markets, said last Tuesday's stock reaction reflected “overly high expectations for percentage weight loss without any emphasis on easier dosing” of the shot.

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

“MariTide data clearly demonstrates that Amgen is a competitor in the obesity and diabetes indications and is today demonstrating compelling weight loss in both indications,” Seigerman said.

In the study, MariTide also helped patients with obesity and type 2 diabetes lose up to 17% of their weight after one year.

The drug's effectiveness could also improve, Jefferies analyst Michael Yee said in a note last week. The 20% weight loss after a year without a plateau could increase to 25% by 18 months, Yee said. He found that, in comparison, Zepbound-induced weight loss largely stagnated for a year.

The most common side effects of MariTide were gastrointestinal in nature, including nausea, vomiting, and constipation. Nausea and vomiting were predominantly mild and occurred in association with the first dose of MariTide.

Amgen said the incidence of nausea and vomiting was also significantly reduced by increasing the dose. This involves starting patients on a lower dose of MariTide and gradually increasing it over a period of time until they reach a higher target dose.

Approximately 11% of patients in the dose escalation groups discontinued treatment due to adverse side effects, while less than 8% discontinued treatment specifically due to gastrointestinal side effects such as nausea and vomiting.

Amgen reported that 70% of patients in dose escalation groups experienced nausea and 40% experienced vomiting.

However, Amgen said it conducted another early-stage study that found that when patients start MariTide, the starting dose was lower, these rates were significantly reduced, resulting in about 50% of patients over Nausea and 20% reported vomiting.

This appears to be higher than the levels of nausea and vomiting seen with Zepbound and Wegovy. Still, Seigerman said the low severity of these side effects and “the discrete events early in treatment make us confident that they are manageable.”

He added that he was “encouraged by the reductions observed with dose increases.”

In a research note last week, JPMorgan analyst Chris Schott said Amgen would examine lower starting doses in its Phase 3 trial of MariTide. The company believes that “further improvement in tolerability in the Ph3 trial will be key to potential acceptance of the compound,” he noted.

David Risinger, an analyst at Leerink Partners, outlined in a note last week key questions that will need to be addressed when the study's full results are released. He said this includes detailed data on how well patients tolerated the drug when no dose escalation was used, as well as data on weight loss in non-diabetic patients who received the highest dose of the drug.

Feel free to send tips, suggestions, story ideas and data to Annika at annikakim.constantino@nbcuni.com.

The latest in health tech: GE HealthCare acquires Japanese pharmaceutical company

GE Healthcare's booth is seen ahead of the 2022 China International Fair for Trade in Services (CIFTIS) at the China National Convention Center on August 28, 2022 in Beijing, China.

Yi Haifei | China News Service | Getty Images

GE Healthcare announced Monday that it will fully acquire Japanese radiopharmaceutical company Nihon Medi-Physics (NMP). According to a statement, GE HealthCare has held a 50% stake in the company since 2004 and will acquire the remaining half from Sumitomo Chemical.

Tokyo-based NMP was founded in 1973. The company makes radiopharmaceuticals, a special type of radioactive medicine that can be used to treat some types of cancer and perform imaging tests. NMP operates 13 manufacturing facilities and conducts its own research and development, GE HealthCare said.

Radiopharmaceuticals are becoming an increasingly competitive market as companies like it Bristol Myers Squibb, AstraZenecaEli Lilly and Novartis Race to develop them. Two Novartis radiopharmaceuticals, Pluvicto and Lutathera, are already available in the United States

According to the press release, NMP generated sales of approximately $183 million last year. Prior to Monday's announcement, GE HealthCare held three seats on NMP's board.

“This will strengthen our precision care strategy in Asia and our existing presence in Japan, where our contrast agents and medical devices are used daily to enable imaging procedures across the country,” said Kevin O'Neill, president and CEO of GE's Pharmaceutical Diagnostics segment HealthCare, the press release says.

Terms of the deal were not disclosed and closing is expected to close early next year, according to the press release. The takeover is still subject to official approval.

Solomon Partners advised GE HealthCare on the transaction.

GE HealthCare announced the acquisition during the Radiological Society of North America's 2024 Annual Meeting in Chicago, where it shared a number of additional updates. This week, the company unveiled a new 3D MRI research baseline model, a new SPECT/CT solution, and a new submission to the U.S. Food and Drug Administration, among other things.

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

Feel free to send tips, suggestions, story ideas and data to Ashley at ashley.caroot@nbcuni.com.