07:44 AM EST, 11/27/2024 (MT Newswires) -- Amgen's ( AMGN ) investigational drug MariTide is a good opportunity for the company to enter the obesity drug market, but that is if the drug's current tolerability issues are mitigated, Truist Securities said in a note Wednesday.

On Tuesday, Amgen ( AMGN ) reported that a phase 2 MariTide study showed up to 20% average weight loss after a year without a plateau. Truist said in its note that this data is comparable to the popular tirzepatide of Eli Lilly ( LLY ) , which records up to 21% average weight loss, and "potentially better as we await what additional weight loss is to come in the upcoming months."

However, the same Amgen ( AMGN ) report noted gastrointestinal-related issues as a common adverse effect, making MariTide's current tolerability profile seem "inferior to marketed alternatives and competitive pipeline therapies," Truist said.

"If successful, MariTide would be the third to market (at best, considering other drugs in development) with efficacy in-line with [tirzepatide]," Truist said, noting that the current competitiveness of the obesity landscape calls to question how much of the market Amgen ( AMGN ) can carve out. "Products from Eli Lilly ( LLY ) and Novo Nordisk will have had years of real-world data and established profiles to reassure patients and prescribers."

Given the competition, Amgen ( AMGN ) has an opportunity to differentiate by focusing on MariTide's reported profound effect on cardiometabolic parameters, Truist added.