Amgen Shares Decline Following MariTide Trial Results

Shares of Amgen plummeted up to 12% following the release of disappointing Phase 2 trial results for its weight-loss drug MariTide, which showed only 20% average weight loss in patients without Type 2 diabetes, falling short of Wall Street's expectations of 25%. While Amgen highlighted that the drug demonstrated no weight-loss plateau and improved cardiometabolic parameters, analysts deemed the results underwhelming, contributing to skepticism about MariTide's competitive viability against established drugs from Eli Lilly and Novo Nordisk. In contrast, shares of Eli Lilly and Novo Nordisk rose approximately 4% after the Biden administration proposed expanded Medicare coverage for weight-loss drugs, potentially benefiting millions of older Americans. MariTide, which is designed for less frequent subcutaneous administration, plans to move into Phase 3 trials to explore its treatment applications further. Despite the setback, Amgen executives expressed optimism about the drug's future potential. The company reported that gastrointestinal side effects were generally mild and manageable, with no significant new safety concerns emerging from the trial.