Amgen and its MariTide programme: Is the stock drop worth the buying opportunity?

Amgen $AMGN recently disclosed the results of its obesity treatment candidate MariTide, which has completed Phase II clinical trials. Although the stock responded with a drop of more than 12%, it closed the day with only a 4.7% decline. The market viewed the results as less promising compared to competing drugs from Eli Lilly (LLY) and Novo Nordisk (NVO). Still, the situation may be more favorable for long-term investors than it appears.

Comparison with competitors

1. Efficacy of MariTide:

- $AMGN's MariTide enables a 20% weight reduction over one year, which is less than the 24% of Eli Lilly's Zepbound but more than the 14% of Novo Nordisk's Wega.

2. Tolerability and side effects:

- Only 8 % of patients discontinued treatment due to side effects, which is significantly lower than the estimated 50 % of competitors.

- Gastrointestinal side effects were minimized after the first dose.

3. Dosage convenience:

- MariTide is administered monthly, while competitors offer weekly dosing, which may be a key advantage for patients seeking more convenient treatment.

Potential for market success

- Phase 3 clinical trialsA: MariTide will be optimized for specific patient groups, which may increase its efficacy and tolerability.

- Wider marketCurrent drugs target obese patients. MariTide could also appeal to overweight people who require a longer-term, more tolerable solution.

- An alternative for patients: Each patient responds differently to treatment. Those who hate Zepbound or Wegova may choose MariTide.

Conclusion.

Despite the market's mixed reaction, it has MariTide has the potential to fill a gap in the market due to its tolerability and convenient dosing. Although it is not certain to become a blockbuster, its benefits for $AMGN appears to be underestimated. Thus, the stock's current decline may present an opportunity for investors who believe in the company's long-term growth.