Amgen, Merck, and Viking Therapeutics each addressed key aspects of their business strategies and drug development programs at the J.P. Morgan Healthcare Conference (JPM25). Amgen defended its obesity drug candidate MariTide, while Merck outlined plans to mitigate the impact of Keytruda's upcoming patent expiration. Viking Therapeutics discussed its partnering strategy for its obesity drug, VK2735.
Amgen's MariTide Defense
Amgen's market value experienced volatility due to the anticipation surrounding MariTide, a weight loss drug designed for less frequent dosing compared to existing treatments. While initial Phase 2 trial results raised concerns among analysts, Amgen executives defended the drug's profile and data presentation at JPM25.
Peter Griffith, Amgen’s chief financial officer, stated, "We don’t hype data. This is a differentiated medicine." He attributed the stock's decline to trading behavior and highlighted data indicating comparable weight loss to existing medicines at an earlier time point, with the potential for once-monthly or less frequent administration. Susan Sweeney, Amgen’s head for obesity and related conditions, added, "I think MariTide will differentiate itself not only on the profile — that we are a different product than the weeklies, which seem to be more similar to each other than not — but also in the investment that we're putting behind it."
Amgen is moving forward with late-stage studies in obesity, heart failure, sleep disorders, and kidney disease to strengthen its position with insurers. Full Phase 2 study results, including findings from a different dose escalation scheme, are expected to be presented at an upcoming medical meeting.
Merck's Patent Strategy
With Keytruda's U.S. patent protection expiring in 2028, Merck anticipates a significant revenue impact. However, CEO Rob Davis described the situation as "a hill, not a cliff," outlining strategies to offset the loss of exclusivity.
Merck plans to expedite the approval and launch of a subcutaneous version of Keytruda by the end of 2025. Davis expects a 30% to 40% conversion rate of Keytruda patients to the subcutaneous formulation, particularly among those receiving Keytruda as a monotherapy or in combination with oral drugs. "We're going to price to drive the adoption, so you should assume that and the price will evolve over time," Davis said.
Merck also aims to leverage its pipeline of antibody-drug conjugates, sales of its Gardasil vaccine in China, and the potential introduction of an oral weight loss therapy to bridge the revenue gap. "I feel very confident that we have derisked that outcome," Davis stated.
Viking's Partnering Strategy
Viking Therapeutics, focused on developing obesity drugs, is considering potential partnerships to compete with larger pharmaceutical companies. CEO Brian Lian outlined the characteristics of an ideal partner, stating, "Given the size of the obesity market, you would want a partner that has some experience in these large metabolic indications, you know, like a lipid background, or experience with diabetes. We would prefer a global partnership. That would be probably the best."
Lian also addressed manufacturing plans, assuring investors that Viking has sufficient supply of both subcutaneous and oral formulations of its lead product, VK2735, to complete Phase 3 and Phase 2 testing, respectively. "We've been working really hard to reach a long-term supply agreement that hopefully would include fill and finish for [subcutaneous] and tablet [formulations]," he said. "We're making a lot of progress. It's too early to make any announcements, but I think we should be in a position in the reasonably near term to update what our supply picture looks like."
