Amgen Inc.'s (NASDAQ:AMGN) stock dropped over 7% on Tuesday following revelations about bone density loss in early trials of its experimental obesity drug MariTide, while CNBC's Jim Cramer suggested the news could benefit rival Eli Lilly And Co (NYSE:LLY).
What Happened: Previously undisclosed data from MariTide's Phase 1 trial showed a 4% decrease in bone mineral density among participants receiving a 420mg dose during the 12-week multiple ascending dose study. According to Olivia Brayer of Cantor Fitzgerald, the information emerged from hidden tabs in extended data files related to the trial.
MariTide, positioned as a monthly alternative to weekly injections offered by competitors Novo Nordisk (NYSE:NVO) and Eli Lilly, operates through a different weight loss mechanism. The drug's development has attracted significant attention due to its potential to disrupt the growing obesity treatment market.
"If Amgen has hidden bone risk data for its obesity drug, that's huge news for Lilly which has become a pathetic stock of late," Cramer wrote on X, formerly Twitter, announcing plans to discuss the implications at an upcoming meeting.
If Amgen has hidden bone risk data for its obesity drug , that's huge news for Lilly which has become a pathetic stock of late. Club name.. will talk about it at Thursday's meeting
— Jim Cramer (@jimcramer) November 12, 2024
Why It Matters: Despite concerns, Cantor Fitzgerald maintained its Overweight rating on Amgen with a $405 price target. The firm acknowledged that while some bone density loss is expected during weight loss treatments, particularly with a suboptimal diet, the dose-dependent increase in bone density loss could raise red flags.
The analysis also revealed data about AMG 598, a predecessor molecule that Amgen may have been investigating to challenge assumptions about GIPR antagonism's role in bone density loss.
Price Action: Eli Lilly stock closed at $818.86 on Tuesday, down 1.63% for the day, with a slight drop of 0.10% in after-hours trading. Despite this, the stock has seen a strong 38.27% increase year-to-date.
Meanwhile, Amgen ended the day at $298.84, down 7.14%. However, it saw a slight recovery after hours, rising 0.61%. Amgen's stock has gained 0.49% year-to-date, according to data from Benzinga Pro.
- Amazon Confirms Vendor Data Breach Affecting 2.8M+ Employee Contacts, Adds To Growing List Of MOVEit Hack Victims
Image Via Shutterstock
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
