Weight Loss Drug Wars Heat Up: Amgen Challenges Eli Lilly, Novo's Dominance

The battle for the multibillion-dollar obesity market just got fiercer. Amgen Inc's AMGN new drug candidate, MariTide, reported promising results, helping patients shed around 20% of their body weight.

But when up against the current titans — Eli Lilly And Co LLY and Novo Nordisk A/S NVO — "promising" may not cut it.

Weight Loss: A Tough Market For Newcomers

Eli Lilly and Novo Nordisk's drugs, Zepbound and Wegovy, aren't just treatments—they're juggernauts. Amgen's MariTide enters the fray with a unique antibody-peptide mechanism, which could offer less frequent dosing and potentially fewer rebounds in weight. Yet, with side effects like nausea and vomiting in 70% of patients, it's a tough sell in a market where first impressions matter.

Read Also: Amgen Reveals Data From Closely Watched Monthly Obesity Drug, With Weight Loss Of Up To 20% At One Year And No Plateau

As Nicholas Anderson of Thornburg Investment Management points out, "A 20% weight loss would have been best-in-class a few years ago. But Novo Nordisk and Eli Lilly have drugs in the pipeline that could meet or exceed 25% weight loss."

Worse for Amgen, MariTide is still in phase 2, while Lilly and Novo's next-generation drugs are nearly ready for market.

The Pfizer-Merck Parallel

Pharma history suggests dominance isn't guaranteed—Merck & Co Inc's MRK statin Mevacor paved the way in the 1980s but was eventually outpaced by Pfizer Inc's PFE Lipitor.

However, with obesity drugs, the first movers seem poised to stay on top. Despite Amgen's potential 10% market share, it's hard to see MariTide displacing the leaders in what some are calling "the greatest pharmaceutical bonanza of all time."

A Big Market, Even For The Underdogs

Amgen doesn't need to dethrone Lilly and Novo to win. Even a small slice of the projected $100 billion market is lucrative. MariTide's once-monthly injection offers manufacturing efficiencies and cardiovascular perks, as noted by BMO Capital Markets analyst Evan Seigerman.

For now, Amgen may only nibble at the obesity market pie, but the stakes are massive. Whether it's a scrappy upstart or a next-gen titan, one thing is certain—the weight-loss wars are just getting started.

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