After the latest data was released on the highly anticipated experimental obesity drug MariTide from the USA pharmaceutical company amgen, both 'weight loss giants' breathed a sigh of relief.

On Tuesday, according to the Wall Street Journal, amgen reported that its MariTide helped patients lose about 20% of their weight in clinical trials, but common side effects like nausea and vomiting seem insufficient to compete with the 'giants' drugs. More detailed data is expected to be released at next year's medical conference.

After the report was released, amgen's stock briefly fell over 12.3%, dropping 2.47% in the past five days.

Amgen's data performance is poor, and progress is lagging.

Data shows that the weight loss effect of MariTide did not exceed eli lilly and co's Zepbound, and its competitors eli lilly and novo-nordisk a/s are developing next-generation drugs, which show more promising weight loss effect data, indicating that the market leadership of these two companies is not under threat. Nicholas Anderson, a portfolio manager at Thornburg Investment Management, stated:

"If amgen's weight loss drug could achieve a 20% weight loss effect a few years ago, it would have been the best among similar products, but now the pipeline drugs from eli lilly and novo-nordisk a/s may achieve or exceed a 25% weight loss effect."

Additionally, the drugs from these two companies are about to complete the third phase of trials, while MariTide has just completed the second phase and still requires a large-scale and costly third phase process.

"The weight loss duo" continues to dominate.

In the pharmaceutical field, introducing new medical approaches does not guarantee a company's long-term leadership or market share. However, the obesity field seems different, as the first movers appear more likely to maintain leadership.

From large pharmaceutical companies including amgen, pfizer, and astrazeneca, to small biotechnology firms like viking therapeutics and structure therapeutics, dozens of companies are developing drugs that may eventually capture market share, with analysts estimating this market will become the largest pharmaceutical market in history.

However, while some of their newly launched methods can offer different treatment options for patients, none have demonstrated the potential to truly shake the dominance of the "weight loss duo."

As the "strongest competitor," amgen's MariTide appears to provide a certain advantage in its mechanism of action. Unlike Zepbound and Wegovy, which are peptide-based drugs that directly activate GLP-1 receptors to promote weight loss, MariTide uses an antibody linked to a peptide, which may enhance durability and minimize weight rebound. The enhanced durability allows MariTide to be administered in smaller doses while maintaining efficacy, which is also why investors are excited about the data.

However, for any drug, investors will focus on two key factors: efficacy and side effects. In these two areas, MariTide looks good, but it is not without weaknesses, especially concerning side effects:

In the trial, approximately 11% of patients in the group receiving gradually increased doses withdrew from the MariTide trial due to side effects, with less than 8% withdrawing due to gastrointestinal issues. Amgen reported that 70% of patients in this group experienced nausea, and 40% experienced vomiting, although these symptoms generally subside.

There are also analysts who believe that if it is just to secure a place in the market, amgen does not need to be the best. Assuming its advantages as a long-acting drug ultimately allow it to gain a 10% market share, this would still be a significant aspect in the weight loss drug market.

Furthermore, for investors, amgen offers an attractive entry point, as its stock price largely reflects the market's underestimation of this opportunity. Currently, the company's stock price is close to the level it was before announcing its obesity portfolio.

Evan Seigerman, an analyst from BMO capital markets, also pointed out:

“MariTide's once-a-month injection also offers manufacturing advantages, and its improvement in blood pressure may indicate broader cardiovascular benefits.”