Although Amgen does not yet have a GLP-1 drug approved for the market, this situation may change in the future.
With a market capitalization of approximately $950 billion, Eli Lilly (LLY) has risen to the top spot in the global healthcare sector by market value. Over the past five years, thanks to soaring market demand for its GLP-1 drugs Mounjaro (for diabetes) and Zepbound (for weight loss), the company’s stock price has surged by a staggering 400%.
If you are worried about missing out on Eli Lilly’s investment opportunities, there is no need to be overly anxious—currently, multiple healthcare companies are actively developing GLP-1 drugs, which are expected to become new growth engines in the future. Among them, Amgen (AMGN) deserves investors’ close attention.
Amgen is developing a GLP-1 injection called MariTide, with its standout feature being that it only requires once-monthly dosing. In contrast, Eli Lilly’s Mounjaro and Zepbound are both administered weekly. Although oral medications have attracted attention, they typically require daily intake. MariTide may offer patients a more convenient treatment option. Company CEO Bob Bradway revealed that existing data even suggests the drug could eventually be dosed quarterly.
While many patients may prefer oral medications, MariTide could still capture significant market interest if it requires only four injections per year. Clinical trials have shown that over a 52-week treatment period, MariTide can help participants lose up to 20% of their body weight, an effect comparable to currently approved GLP-1 drugs.
If MariTide, currently in Phase III clinical trials, ultimately gains approval, it could open up substantial upside potential for Amgen’s stock price. Over the past five years, the company’s stock has increased by only 34%, and its valuation remains relatively modest. According to analyst forecasts, its forward price-to-earnings ratio is just 16 times, while Eli Lilly’s forward P/E ratio is as high as 32 times.
Compared to Eli Lilly, Amgen currently holds a clear valuation advantage. Driven by potential catalysts, its stock price could see significant growth, making it an attractive investment opportunity in the healthcare sector at present. Over the next decade, the market size for GLP-1 drugs is expected to exceed $150 billion, and both Eli Lilly and other companies entering the field are poised to capture substantial shares in this vast market.
