Amgen's shares soared in premarket trading in New York following the drug maker's announcement of "very encouraging" clinical trial results for its new injectable weight-loss drug, "MariTide."
Amgen's MariTide is poised to compete with Eli Lilly & Co's Zepbound and Novo Nordisk A/S' Wegovy, both blockbuster drugs in the weight-loss market.
Bloomberg Intelligence published a recent note that estimated the weight-loss drug market will exceed $80 billion in annual sales by 2030.
On Thursday evening, Amgen CEO Robert Bradway told investors during an earning call, "We recognize the significant interest in obesity."
"We are confident in MariTide's differentiated profile and believe it will address important unmet medical needs," Bradway said.
Amgen expects data from the ongoing Phase 2 study to be released later this year and plans a "comprehensive" Phase 3 trial next.
If MariTide is approved, the pharmaceutical company expects patients to inject themselves with the medication once a month, or possibly even less frequently than current weight-loss drugs on the market. It discarded plans to develop an oral form of the weight-loss drug.
Shares of Amgen jumped nearly 15% to $319 - near a record high - in premarket trading.
If the premarket gains hold during the cash session, a 15% increase would mark the largest intra-day move since the 15.10% rise on July 20, 2005. If the gains exceed this level, it would become the largest single-day gain since October 30, 1987.
Meanwhile, Barclays Plc analyst Emily Field said it's too early to judge the competitive threat between Eli Lilly and Novo.
However, traders dumped Novo shares in Copenhagen, down 4% on Friday.
"As of today, we see no cause for concern regarding the competitive dynamics versus the market leaders," Field wrote in a note. "We really will need to see the data," Field wrote in a note.
