Amgen faces challenges as MariTide trial yields mixed results

In the United States, Amgen's shares experienced a decline of 5.7% to $272.88 following the release of full results from part one of its Phase 2 clinical trial for MariTide, an experimental obesity treatment. The trial results indicated that participants without Type 2 diabetes achieved an average weight loss of up to 20%, while those with the condition experienced a weight loss of up to 17%. These results are significant as they outperformed the placebo results. Additionally, there were noteworthy reductions in hemoglobin A1c levels and improvements in various cardiometabolic measures. Notably, the weight loss did not plateau by the 52-week mark, suggesting sustained effectiveness. Safety assessments revealed mild to moderate gastrointestinal side effects, which demonstrated improved tolerability during dose escalation. However, the market reaction was negative, likely due to apprehensions regarding competitive pressures within the GLP-1 market and the lengthy path ahead for Phase 3 trials. Amgen has since initiated the MARITIME Phase 3 program, with plans for additional studies focusing on cardiovascular diseases, heart failure, and sleep apnea. Investors are keenly observing these developments as they can significantly influence the company’s future prospects and stock performance. Despite the robust clinical outcomes exhibited in the trial, Amgen stock fell by 6% on June 23, 2025, coinciding with the disclosure of mid-stage clinical trial results highlighting the necessity of a low starting dosage to alleviate side effects such as vomiting. As part of the strategy for the Phase 3 trials, Amgen aims to start patients on a lower dosage that would gradually increase over an eight-week period. MariTide holds immense strategic importance for Amgen, with projected annual peak sales exceeding $5 billion, reinforcing its potential as a cornerstone of the company’s obesity treatment portfolio. While the safety concerns have dampened market enthusiasm, analysts continue to view Amgen as a strong pick at a current price around $270 per share. However, there remain some minor concerns regarding the stock's performance given a weak balance sheet characterized by a poor debt-to-equity ratio of 36.6% in contrast to 19.4% for the S&P 500. It is important to note that Amgen's stock has demonstrated a resilience exceeding that of the benchmark S&P 500 index during recent downturns, reflecting its robust overall performance despite current challenges. For investors, this duality presents a compelling case for continued investment in Amgen as it navigates the complexities of bringing MariTide to market.