Amgen Stock Declines Amid Fears Over Obesity Medication; AstraZeneca Allocates .5 Billion for Manufacturing Expansion

Here’s a brief summary of the latest updates regarding Amgen, AstraZeneca, and other key players in the pharmaceutical sector such as Roche, Novartis, and Centessa Pharmaceuticals that you may have overlooked.

Amgen experienced a significant decrease of billion in market capitalization on Tuesday following an analyst’s comment from Wall Street indicating that the company’s anticipated weight management drug MariTide may impact bone density negatively. The note was issued by Olivia Brayer from Cantor Fitzgerald, who referenced findings from participants in a Phase 1 trial of MariTide that took the highest dosage. Although this information stemmed from a Nature study released earlier this year, Brayer identified previously overlooked data in an Excel attachment. The drug operates by stimulating a gut hormone named GIP, which Brayer speculated could lead to reduced bone density. However, Amgen responded on Wednesday, asserting that they “do not observe any connection between MariTide administration and changes in bone mineral density.” — Jonathan Gardner

Lexeo Therapeutics shares saw a nearly 20% increase on Wednesday after the company announced it had secured approval from the Food and Drug Administration regarding the next steps for its gene therapy aimed at treating Friedreich’s ataxia with cardiomyopathy. The firm intends to gauge the expression of a protein called frataxin alongside the reduction of the left ventricular mass index as primary objectives for an upcoming registrational trial. Successful outcomes may allow Lexeo to fast-track the approval process for its therapeutic intervention, LX2006. — Ned Pagliarulo

AstraZeneca is set to invest .5 billion in the establishment and expansion of R&D and manufacturing sites across the United States over the next two years, generating over 1,000 jobs in the process. The capital will be allocated to a “next-generation” biologics facility located in Maryland, the company’s research and development hub in Massachusetts, cell therapy production sites on both coasts, and specialized drug manufacturing in Texas. Thus far in 2024, AstraZeneca’s capital expenditures totaled approximately .2 billion. — Jonathan Gardner

Roche has decided to invest million in startup Flare Therapeutics for the development of small molecule treatments targeting “transcription factors” that play a role in cancer. Flare will be responsible for the discovery and preclinical work focusing on these transcription factors, while Roche will oversee preclinical, clinical, and commercialization efforts for any emerging products. Depending on the success of such products, Flare stands to gain additional payments and royalties of up to .8 billion and has the option to co-invest in the development of one drug for greater financial returns. Launched in 2021 with the support of Third Rock Ventures, Flare has attracted 5 million in venture capital. — Jonathan Gardner

Novartis has initiated a multi-year research partnership with drug discovery firm Schrödinger, involving a payment of 0 million, which will also enhance their existing agreement regarding access to Schrödinger’s predictive modeling platform. The collaboration aims to identify disease targets crucial to Novartis’ research and development strategy and advance multiple therapy candidates against these targets, with Novartis managing the clinical development of any viable candidates. — Ned Pagliarulo

Centessa Pharmaceuticals has made the decision to halt the development of a treatment for hemophilia B, describing this as a “strategic and data-driven” choice influenced by the “changing treatment landscape” for this condition. The company will redirect its focus and resources towards progressing an orexin agonist designed to benefit patients suffering from narcolepsy and idiopathic hypersomnia. Analysts noted promising Phase 1 data presented by Centessa for this new drug on Tuesday. — Ned Pagliarulo