Amgen's Diverse Portfolio Strategy Amid Obesity Drug Scrutiny

Amgen, a leading biotech company, is navigating a complex landscape of drug development and market expectations, with its obesity prospect MariTide at the center of investor attention. However, the company's executives are emphasizing a broader portfolio approach to secure its future in the pharmaceutical industry.

MariTide: High Stakes in the Obesity Market

Amgen's investigational drug MariTide has become a focal point for investors, with its potential to compete in the rapidly growing GLP-1 market for obesity treatment. Evaluate Pharma projects MariTide sales to reach $3.7 billion by 2030, though this figure could be conservative given the expanding obesity drug market.

The drug's mixed Phase II data, which showed weight loss of up to 20% against expectations of 25%, led to an 11% decline in Amgen's share price in November 2024. To address potential tolerability issues, Amgen has proposed a three-step dose escalation strategy. The company plans to publish additional Phase II results in the fourth quarter of 2025, which could significantly impact investor sentiment.

Beyond MariTide: A Diversified Pipeline

While MariTide dominates headlines, Amgen is advancing several other promising candidates:

1. Rocatinlimab: This anti-OX40 antibody for atopic dermatitis, developed in partnership with Kyowa Kirin, is undergoing eight Phase III studies. Data from the ASCEND and ASTRO trials, due by the end of 2025, will provide insights into its efficacy as a maintenance therapy and in adolescent patients.

2. Repatha: Amgen's approved cholesterol drug is expecting cardiovascular outcomes data in the second half of 2025, which could support further growth. Q2 sales increased 31% to $696 million.

3. Bemarituzumab: Phase III data for this anti-FGFR2b antibody in gastric cancer is expected around the end of 2025.

4. Uplizna: An FDA decision on its use in generalized myasthenia gravis (gMG) is due in December 2025. TD Cowen analysts project peak sales of $2-3 billion for the Uplizna franchise.

Biosimilars and Portfolio Strategy

Amgen is also making significant strides in the biosimilars market, aiming to grow sales to over $4 billion by 2030. The company is developing a biosimilar of Merck's intravenous 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: "With these waves of launches that build on each other, in aggregate it's actually quite a healthy business."

This diverse approach, combining high-potential candidates like MariTide with steady revenue streams from biosimilars and established products, underscores Amgen's strategy to maintain growth and mitigate risks in an evolving pharmaceutical landscape.