Amgen (AMGN) the stock collapsed on Monday – as Elie Lilly (THERE IS) stock hit an all-time high – after the biotech company said its experimental weight-loss drug appeared to be durable for up to 150 days.
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In an Amgen study, animals received the same dose three times. At the highest dose, animals lost an average of 8.2% of their body weight over 92 days. In comparison, animals who received a placebo gained 1.7% more weight over the same period.
A second study tested doses that increased over time. The diet that increased to the highest dose resulted in a 14.5% body weight loss over 85 days, compared to a 1.5% gain for the placebo group. Weight loss was still intact after 150 days.
But at noon, discussions on the stock market todayAmgen shares fell 0.4% to 321.87. Eli Lilly Stock jumped more than 4% to 698.43. Novo Nordisk (NGO), another player in the weight-loss drug space, saw its shares rise more than 3% to 117.87.
Part of the rise in Novo Nordisk shares follows Novo Holdings’ $11.5 billion. the acquisition of Catalent (CTLT). Novo Holdings is the majority shareholder of Novo Nordisk. Catalent is a contract drug manufacturer and already helps make Novo’s drugs for obesity and diabetes.
Amgen Stock: getting into weight loss drugs
The results could help Amgen break into the weight-loss drug market. Lilly and Novo run the space, which has heated up considerably in the last year. Eli Lilly stock has soared more than 59% in 2023, while Novo Nordisk stock has jumped 53%.
But industry observers say there is room for more competitors in the market, which is huge. The purchase of Catalent will help Novo strengthen its production. Novo has struggled to meet demand amid growing interest in weight-loss drugs. Eli Lilly is further behind, having won approval from rival Zepbound last year.
Amgen’s results, however, are preclinical. The company has not yet conducted human testing, which is the next step. It may be years before Amgen can launch a treatment for obesity. Analysts surveyed by FactSet don’t expect any sales through 2028, the latest year for which there are estimates.
Yet Amgen stock is also trading at an all-time high. Stocks collapsed bottom of cup with point of purchase at 288.46 at the end of December, MarketSmith.com watch. The stock now extends well beyond the shopping area.
Follow Allison Gatlin on X, the platform formerly known as Twitter, at @IBD_AGatlin.
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