Amgen's Diversified Portfolio Strategy Amid Obesity Drug Scrutiny

Amgen, a leading biotech company, is navigating a complex landscape of pharmaceutical development and market expectations. While its investigational obesity drug MariTide has garnered significant attention, the company is emphasizing a broader portfolio approach to drive future growth.

MariTide: High Stakes in the Obesity Market

Amgen's MariTide, a GLP-1 and GIP receptor-targeting drug for obesity, has become a focal point for investors. The drug's potential is substantial, with Evaluate Pharma projecting sales of $3.7 billion by 2030. However, this figure may be conservative given the expanding GLP-1 market, which is expected to account for 9% of all prescription drug sales by the end of the decade.

Recent Phase II results for MariTide showed weight loss of up to 20%, falling short of some analysts' expectations of 25%. This led to an 11% decline in Amgen's share price in November 2024. The company is addressing potential tolerability issues with a proposed three-step dose escalation strategy and plans to publish additional Phase II results in the fourth quarter of 2025.

Beyond MariTide: A Diverse Clinical Pipeline

Amgen is not relying solely on MariTide for future success. The company has several key clinical trials and potential product launches on the horizon:

1. Rocatinlimab: Phase III trials ASCEND and ASTRO for this atopic dermatitis treatment are due to report by the end of 2025. While showing promise, analysts suggest it may face stiff competition from established drugs like Dupixent.

2. Repatha: Cardiovascular outcomes data for this cholesterol drug is expected in the second half of 2025, potentially supporting further growth of the PCSK9 inhibitor.

3. Bemarituzumab: Phase III data in gastric cancer is anticipated around the end of the year, with analysts viewing it as a potential growth driver.

4. Uplizna: An FDA decision for its use in generalized myasthenia gravis (gMG) is expected in December, with analysts projecting peak sales of $2-3 billion for the Uplizna franchise.

Biosimilars and Portfolio Diversification

Amgen is also making significant strides in the biosimilars market. The company aims to grow its biosimilar sales to over $4 billion by 2030. A key part of this strategy is the development of a biosimilar for Merck's Keytruda, set to lose patent protection in 2028.

Justin Claeys, VP of investor relations at Amgen, highlighted the importance of the portfolio effect in the biosimilars business. While individual biosimilars may face competition and price erosion, the cumulative effect of multiple launches creates a healthy business segment.

This diversified approach, combining high-potential candidates like MariTide with a robust pipeline and a growing biosimilars business, demonstrates Amgen's strategy to maintain growth and mitigate risks in an increasingly competitive pharmaceutical landscape.