We know that weight loss drugs have been big winners for the companies that produce them. And now, biotech stock Amgen (AMGN) looks to get in on that action itself. Two new late-stage trials have kicked off, and brings Amgen that much closer to bellying up for a slice of the pie, even if many of those taking such drugs are no longer especially interested in pie. Shareholders are cautiously optimistic, and shares were up fractionally in Wednesday afternoon’s trading.
Amgen’s MariTide, reports note, is coming up for two key late-stage trials, and if these actually go well, could give Amgen a shot at a market that is currently explosively popular. So far, things are going well, according to executive vice president of research and development Dr. Jay Bradner. In fact, MariTide has one major advantage over many of its cohorts: it is a monthly injection, where many of its competitors are weekly.
MariTide is part of the GLP-1 market, which, when introduced into the body, acts like certain key hormones that reduce appetite and manage blood sugar. And with close to 15 million people currently having a prescription for GLP-1s, that suggests a major market afoot. With some drugs recently coming off shortages, and thus socking compounding pharmacies with a potential loss in the market, there will likely be room for another major player in this sector.
Improvements On The Nose
But weight loss drugs are not Amgen’s only iron in the fire right now. In fact, it is working with AstraZeneca (AZN) on a new treatment known as Tezspire. Tezspire addresses “…chronic rhinosinusitis with nasal polyps…,” and once it gets a little farther, the duo will be able to present its case to the Food and Drug Administration for approval.
This is actually good news for Amgen, because several of its main products are starting to come off patent and will thus face threat from generic replacements. For instance, Enbrel and Otezla are both set to come off patent, and those two together represented $1.6 billion in revenue just in 2024’s fourth quarter.
Is Amgen a Buy, Sell or Hold?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on AMGN stock based on 11 Buys, six Holds and one Sell assigned in the past three months, as indicated by the graphic below. After a 17.09% rally in its share price over the past year, the average AMGN price target of $333.50 per share implies 5.48% upside potential.
