Amgen Stock Slides Following Disappointing Weight-Loss Drug Trial Results

Amgen Inc.’s stock (AMGN) experienced a significant decline in recent trading sessions following the release of disappointing results from a mid-stage trial of its experimental weight-loss drug, MariTide. On Tuesday, November 26, 2024, Amgen’s stock tumbled 7.8% in premarket trading after the company announced that the trial data did not meet analyst expectations.

The trial results indicated that MariTide, a monthly weight loss injection, showed up to 20% weight loss in participants, but this was accompanied by concerns over bone density. An early-stage study suggested a potential safety risk tied to the drug, specifically a loss of bone mineral density, which raised red flags among analysts and investors.

Despite these concerns, Amgen has defended its drug, stating that there is no link between MariTide and changes in bone mineral density. The company issued a statement to address the concerns, but the damage to investor confidence had already been done, leading to the stock’s sharp decline.

As of the latest trading data, Amgen’s stock closed at $294.00 on November 25, 2024, with a market capitalization of approximately $154.93 billion. Analysts continue to maintain a “Buy” consensus rating for the stock, with a 12-month price target of $334.58, indicating potential for recovery despite the current setback.

The company’s financial performance has been robust, with revenue of $32.53 billion and net income of $4.23 billion in the trailing twelve months. However, the recent developments with MariTide have introduced uncertainty into the stock’s near-term outlook).