Amgen Dismisses Bone Density Concerns Related to Its Weight-loss Drug

(Reuters) -Amgen said on Wednesday there was no link between its experimental weight-loss drug and changes in bone density, a day after those concerns wiped off more than $12 billion from the company’s market value.

The drugmaker’s stock slumped 7% on Tuesday after analysts at Cantor Fitzgerald said their review of early-stage data on Amgen’s MariTide showed a drop in bone mineral density.

“The Phase 1 study results do not suggest any bone safety concern or change our conviction in the promise of MariTide,” Amgen said, adding that it looks forward to data from its mid-stage study later this year.

Shares of Amgen rose 2.5% in premarket trading after the company’s statement.

Cantor analysts said they found the bone mineral density changes when reviewing supplemental data that was published along with the results in February.

But at least four analysts said the concerns were overblown, especially considering the company was conducting a mid-stage study and planned to invest in a larger late-stage trial.

A new safety signal would certainly cause alarm on any drug, but Amgen knows much more about MariTide than Street, Piper Sandler analyst Christopher Raymond said in a note.

MariTide activates the GLP-1 hormone associated with the feeling of fullness, similar to popular weight-loss drugs such as Novo Nordisk’s Wegovy and Eli Lilly’s Zepbound.

But MariTide is different as it blocks the activity of another gut hormone called GIP, which has been linked to fat storage and metabolic regulation.

Amgen hopes the different approach will provide quicker weight loss and less frequent dosing compared to Wegovy and Zepbound.

Analysts expect Zepbound to generate $5.7 billion in sales this year, and Wegovy to garner 57.14 billion Danish crowns ($8.15 billion) despite shortages.

($1 = 7.0142 Danish crowns)

(Reporting by Leroy Leo and Bhanvi Satija in Bengaluru; Editing by Shinjini Ganguli)