Amgen's Obesity Drug Progress Attracts Cathie Wood's Ark Invest
Cathie Wood's Ark Invest made a significant purchase of Amgen shares on Friday, following the biopharma company's announcement of promising progress with its weight-loss drug candidate.
Ark Invest, through its ARK Genomic Revolution ETF (ARKG), bought 11,360 shares of Amgen, which surged nearly 12% on Friday. The purchase amounted to approximately $3.54 million. This acquisition increased Amgen's weighting in ARKG to 1.06%, representing the 51,712 shares held by the ETF.
The investment comes after Amgen reported positive financial results and provided an update on its obesity drug pipeline on Thursday. While the company discontinued development of an early-stage oral obesity drug (AMG 786), it announced a shift in focus towards MariTide and other preclinical assets.
gastric inhibitory polypeptide receptor (GIP) and glucagon-like peptide 1 (GLP-1). It is currently undergoing evaluation in a Phase 2 obesity trial.
"We're seeing a differentiated profile of MariTide and are confident that it will address important unmet medical needs, obesity, obesity-related conditions, and diabetes," stated Amgen's Chief Scientific Officer, Jay Bradner.
The company anticipates top-line data from the 11-arm Phase 2 study in late 2024. The weight-loss drug market is estimated to be worth a staggering $100 billion, with Novo Nordisk and Eli Lilly currently dominating the segment.
Following the news, ARKG closed Friday's session up 3.51% at $25.04.