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Amgen (AMGN.O), has said that there was no link between its experimental weight-loss drug and changes in bone density, a day after those concerns wiped off more than $12 billion from the company’s market value.

The drugmaker’s stock slumped 7% on Tuesday after analysts at Cantor Fitzgerald said their review of early-stage data on Amgen’s MariTide showed a drop in bone mineral density, which can increase the risk of fractures.

But Amgen said “the Phase 1 study results do not suggest any bone safety concern or change our conviction in the promise of MariTide.” It plans to report data from its mid-stage study later this year.

Amgen’s shares rose 1.8% in early trading.

Investors are keenly awaiting more data on a drug seen as a contender in the estimated $150 billion market for weight-loss treatments.

Amgen shares react to obesity-drug

Cantor analysts said they found the bone mineral density changes when reviewing supplemental data that was published along with the results in February.

But at least four analysts said the concerns were overblown, since the company was conducting a mid-stage study and planned a larger late-stage trial.

A new safety signal would certainly cause alarm, but Amgen knows much more about MariTide than Wall Street, Piper Sandler analyst Christopher Raymond said in a note.

MariTide activates the GLP-1 hormone associated with the feeling of fullness, similar to popular weight-loss drugs such as Novo Nordisk’s (NOVOb.CO), Wegovy and Eli Lilly’s (LLY.N), Zepbound. MariTide also blocks the activity of another gut hormone called GIP, which has been linked to fat storage.

Amgen, one of the several companies developing weight-loss drugs, hopes the different approach will provide quicker weight loss and less frequent dosing compared to Wegovy and Zepbound.

MariTide cut weight by 14.5% in the 49-patient early-stage trial, according to the data, published in Nature Metabolism journal in February.

Credit: Reuters