Amgen said on Wednesday there was no link between its experimental weight-loss drug and changes in bone density. The development comes a day after those concerns wiped off more than $12 billion from the company’s market value.
According to a report by news agency Reuters, the company’s stock slumped 7% on Tuesday after analysts at Cantor Fitzgerald said their review of early-stage data on Amgen’s MariTide showed the drug had led to 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 percent in premarket trade after the company’s statement as quoted by Reuters.
Cantor analysts said they found the bone mineral density changes when reviewing supplemental data that was published along with the results in February. 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 as well.
“While a new safety signal would certainly be (a) cause for alarm on any drug, the truth is, (Amgen) knows a lot more about this molecule than the Street,” Piper Sandler analyst Christopher Raymond said in a note.
(With inputs from Reuters)
