Amgen Stock Slips After More Analyst Criticism On Weight-Loss Drug Data: Retail Eyes ‘Great Buying Opportunity’
By Stocktwits Inc | First Published Nov 27, 2024, 7:21 PM ISTAn RBC Capital analyst noted that while MariTide’s efficacy aligns with the brokerage’s expectations, its tolerability and long-term dosing regimen leave room for improvement.
Shares of Amgen Inc. ($AMGN) edged down 0.3% in premarket trading Wednesday, on course to extend a losing streak to a third consecutive session.
The decline follows the release of Phase 2 study data for its investigational weight-loss drug MariTide, which delivered mixed reactions from Wall Street despite showing some promising results.
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Amgen reported that MariTide achieved an average weight loss of up to 20% over a year without plateauing, meeting the efficacy bar set by some analysts.
However, the results fell short of igniting enthusiasm on Wall Street, with concerns over tolerability and competitive positioning dominating the conversation.
RBC Capital analyst Gregory Renza reduced his price target for Amgen to $330 from $360, maintaining an ‘Outperform’ rating.
Renza noted that while the drug’s efficacy aligns with the brokerage’s expectations, its tolerability and long-term dosing regimen leave room for improvement.
On the positive side, MariTide’s monthly or less frequent dosing schedule could distinguish it from competitors, but questions around its ultimate profile in the obesity market persist, he added.
Truist analysts, meanwhile, compared MariTide’s weight-loss efficacy to Eli Lilly’s ($LLY) tirzepatide, which boasts up to 21% weight loss, and flagged gastrointestinal issues as a drawback for Amgen’s candidate.
They emphasized the drug’s potential to stand out by targeting cardiometabolic benefits but highlighted the fierce competition in the obesity drug landscape.
H.C. Wainwright took a more critical stance, suggesting that Viking Therapeutics’ ($VKTX) VK2735, which uses weekly injections, has demonstrated faster and more effective weight loss. While monthly dosing might benefit MariTide, the firm believes this is not enough to offset the stronger safety and efficacy data from Viking’s offering.
Despite the lukewarm response from analysts, retail sentiment for Amgen on Stocktwits turned ‘extremely bullish’ amid a spike in message volume.
A Stocktwits poll shows that 73% of retail investors deemed the stock oversold, citing the recent dip as a “great buying opportunity.” Only 15% agreed it was a “fair drop”, based on lingering competitive concerns.
Some optimists pointed to JPMorgan saying that MariTide demonstrates clear effectiveness and convenient dosing, although the bar for weight-loss drugs is rising.
Others also cited Piper Sandler’s Christopher Raymond, who has advised investors to wait for longer-term data.
Amgen shares have lost nearly 6% year-to-date, underperforming broader biotech indices.
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