Amgen Stock Jumps Over 12% in 2025 After Q1 Earnings Beat and Promising Weight-Loss Drug Update

Key Highlights to Monitor

Updated as of May 3, 2024, with latest stock price insights.

Summary Points

• Amgen's stock soared over 12% premarket after the company exceeded Q1 earnings forecasts and shared positive developments on its injectable weight-loss drug, MariTide.
• CEO Robert Bradway revealed that interim analysis of the phase two clinical trial yielded very promising results.
• MariTide is poised to compete with market leaders like Novo Nordisk's Ozempic and Wegovy, as well as Eli Lilly's Zepbound.
• Investors should watch the $330 resistance level, near Amgen's all-time high from early February, for potential breakout signals.

Amgen (NASDAQ: AMGN) experienced a significant premarket boost exceeding 12% following the release of better-than-expected first-quarter earnings and optimistic trial updates on MariTide, its new injectable weight-loss medication.

For the quarter ending March 31, the California-based biotech firm reported adjusted earnings of $3.96 per share, surpassing the analyst consensus of $3.88. Revenue climbed 22% year-over-year to reach $7.4 billion, aligning with market expectations.

Injectable Weight-Loss Drug Set to Challenge Ozempic and Wegovy

Amgen announced a strategic shift, discontinuing development of the oral weight-loss candidate AMG786 to concentrate efforts on MariTide, which has shown encouraging phase two trial results.

CEO Robert Bradway shared during the earnings call that the company completed interim analysis of phase two studies, with outcomes exceeding expectations and reinforcing confidence in MariTide's potential.

Complete phase two data is anticipated by the end of 2024, with phase three clinical trials progressing according to plan.

MariTide is designed for administration via an easy-to-use auto-injector on a monthly or less frequent basis. The drug works by stimulating hormones that promote satiety while inhibiting fat storage hormones, aiding effective weight reduction.

This treatment could disrupt the lucrative obesity drug market, dominated by Novo Nordisk and Eli Lilly, which analysts estimate could reach $100 billion by 2030.

Evercore ISI analyst Umer Raffat highlighted that even modest market penetration could significantly boost investor confidence in Amgen's prospects.

Technical Levels to Watch Post-Earnings Rally

Technically, Amgen's shares found solid support around $261, near the 50-week moving average and a horizontal support line dating back to mid-2020.

The $330 price point remains a critical resistance level, representing the stock’s all-time high from February 2024. A decisive breakout above this level could signal continuation of the long-term bullish trend.

As of ten minutes before Friday's market open, Amgen shares traded up 12.6% at $313.32.

Disclaimer: The insights and opinions expressed here are for informational purposes only and do not constitute investment advice. Please consult with a financial advisor before making investment decisions.

At the time of writing, the author holds no shares in Amgen or related securities.

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