Amgen (AMGN) stock surged late Thursday on its first-quarter profit beat as investors zero in on its potential rivals to Eli Lilly‘s (LLY) and Novo Nordisk‘s (NVO) obesity treatments.

prescription to succeed in the market may make your head spin. On this episode of “Industry Insights,” we’ll discuss what factors to consider with biotech stocks. We also examine how FDA approvals influence sector performance over the long term.” vid-name=”Biotech Stocks Are Shooting Higher. Here’s How You Can Play Them.” vid-cat=”Industry Insights” vid-date=”12/19/2023″ vid-date-tmsp=”1702977121″ vid-image=”https://www.investors.com/wp-content/uploads/2023/12/pXpNIwoM-640×360.jpg” vid-authors=”MEREDITH HEYMAN”>
X

The biotech behemoth is working on two weight-loss drugs. MariTide is in midstage testing for weight loss in adults with or without obesity. Amgen is planning to run multiple Phase 3 studies of the same drug in several diseases. Further, Amgen says it wrapped a Phase 1 study of its other obesity drug, a small molecule medicine known as AMG 786.

If successful, Amgen would rival Novo’s Wegovy and Lilly’s Zepbound. Both are struggling with their own success, however. Wegovy sales nearly doubled year over year in the first quarter, but missed sales projections. Zepbound, on the other hand, topped forecasts. But Lilly’s Mounjaro, which uses the same chemical backbone, missed.

Experts say there’s room for more players in the obesity treatment market. And Amgen uses a slightly different mechanism to prompt weight loss. In after-hours trading, Amgen stock slipped rocketed 10.6% to 309.25.

Amgen Stock: Sales In Line, Earnings Beat

Overall, Amgen’s sales climbed 22% to $7.45 billion, meeting analysts’ forecast. Adjusted earnings slipped 1% to $3.96 per share, and came in above expectations for $3.88, according to FactSet.

Revenue from Amgen’s biggest moneymaker, osteoporosis treatment Prolia, came in at $999 million, advancing 8% year over year. That narrowly beat projections for $998 million. Promisingly, sales of cholesterol treatment Repatha surged 33% to $517 million, crushing calls for $451 million.

The best growth came from Tezspire, Amgen’s treatment for severe asthma. Sales skyrocketed 80% to $173 million. But that lagged Wall Street’s projection for $189 million, according to FactSet.

Amgen narrowed its adjusted earnings outlook for the year and now expects $19 to $20.20 per share. The midpoint of the outlook topped analysts’ forecast for $19.47. The company raised the low end of its sales outlook and now calls for $32.5 billion to $33.8 billion, vs. analysts’ estimate for $32.97 billion.

Amgen stock was narrowly above its 50-day moving average at Thursday’s close.

Follow Allison Gatlin on X, the platform formerly known as Twitter, at @IBD_AGatlin.

YOU MAY ALSO LIKE:

Moderna Breaks Out For The First Time In A Year After Covid Shot Wallops Sales Views

Novo Nordisk Dips After Wegovy Sales Double, But Miss Analysts’ Forecast

Best Growth Stocks To Buy And Watch: See Updates To IBD Stock Lists

Find The Best Long-Term Investments With IBD Long-Term Leaders

Get Timely Buy & Sell Alerts With IBD Leaderboard

Futures Rise As Apple Jumps On Record Buyback; Jobs Data On Tap