- Amgen shares rise after Novo Nordisk drug results.
- Novo Nordisk’s CagriSema reduced subjects’ weight less than expected.
- Amgen itself had difficulty developing its weight-loss drug MariTide.
- AMGN stock has been on a downtrend since at least July.
Amgen shares gained more than 2% in Friday morning trading following the defeat of a foreign competitor in the weight-loss drug industry Novo Nordisk (NVO) dropped after the results of recent drug tests. This news caused shares of other pharmaceutical companies to rise because we are one of the leaders in the weight loss drug market.
The Dow Jones Industrial Average (DJIA) the index rose 1.8%, its best performance in some time, especially after a historic ten-session decline that ended by a whisker on Thursday. At the time of writing, the DJIA moderately leads the NASDAQ and S&P 500 indexes.
The U.S. Personal Consumption Expenditures (PCE) report for November is also encouraging for stock market investors after there was widespread negative sentiment on the Fed’s hawkish outlook on Wednesday and Thursday. U.S. PCE inflation came in lower than economists expected, which could mean the Fed’s inflation concerns are likely to be allayed in future reports.
Amgen Stock News
Novo Nordisk, the Danish manufacturer of weight loss drugs Wegovy and Ozempic, has published data from the third phase of testing of its recent drug CagriSema. CagriSema is supposed to be his next-generation weight loss drug.
However, the data showed that CagriSema caused users to lose 20% of their body weight after 68 weeks. This was consistent with existing weight loss medications and well below the recommended dose of 25% that Novo Nordisk had previously aimed for.
Eli Lilly (LLY) Similar tests show that Zepbound already reduces the weight of its users by 23%. With the weight loss drug industry expected to grow to $150 billion annually by 2030, the competitive nature of the sector has pushed competitors to Novo Nordisk.
One such competitor is Amgen, which is testing MariTide for the same purpose. In behind schedule November, the company published test results that showed the drug caused weight loss of up to 20% in obese and overweight people over a 52-week period. However, the results also showed that it may cause a loss of bone mineral density in patients.
Amgen Stock Forecast
Amgen’s Thursday low of $253.30 was its lowest price since October 31, 2023, but pharmaceutical stocks rode an afternoon wave of optimism and finished up almost 1%. Friday is confirmation that the mood has changed.
Shares have risen again above the $261 level, which has provided support multiple times in behind schedule 2023 and throughout 2024. If AMGN stock can keep this region above $261, the worst may be over. The pharmaceutical company’s shares have been on a downward trend since hitting a record high above $346 in July this year.
Still, the lows formed on November 26 and December 19 below $261 lead us to believe that there may be no bottom. A third break below $261 will have many traders expecting the stock to fall all the way to the May-July 2023 lows, a demand zone extending from $211 to $218.
AMGN stock daily chart
