![]() Many investors choose to buy shares in pharmaceutical companies in advance of clinical trial results. That can limit the impact that these trials have on stock prices. In fact, only 9% of drugs that reach phase I trials eventually receive FDA approval and reach the market. A treatment that looks promising in phase I could be found to have major problems in phase II or III. Early-phase tests offer much less certainty about a drug’s future. However, this study looked at phase III clinical trials, those that come near the end of testing and shortly before successful drugs go to market. Interestingly, stock prices also tended to increase prior to the announcement of positive results and hold steady or decline prior to the announcement of negative results. Negative results produced a 4.5% decrease. When a clinical trial succeeded, stock prices increased by an average of 9.4%. A study published in the Journal of the National Cancer Institute examined stock prices before and after study results for nearly 100 trials and FDA regulatory decisions. Historically, stock prices do move as you’d expect based on drug trial results. Pharmaceuticals are expensive to develop but can bring massive returns if and when they reach the market. To most investors, it makes sense that a successful drug trial can cause a large increase in a company’s stock price. In response to its earnings announcement and details about its trial results, Amgen stock rose 5.6%. For example, it could market AMG 133 as an option for quicker weight loss or one that produces fewer side effects than alternatives. In trials for Saxenda, another obesity drug, participants lost an average of 5% to 7% of their weight after 56 weeks, and those taking Wegovy lost 10% to 16% of their weight in 58 weeks.īased on the results of the trial, Amgen has multiple ways to differentiate its drug from those already on the market. These results are promising for the treatment, especially when compared to other weight-loss drugs. Those who received the high dosage lost 15% of their body weight.ĭuring the study, Amgen closely monitored volunteers for health issues and noted that there were no major safety issues and that side effects were generally “mild and transient.” Those who received a low dose lost 7% of their weight. Some received a low dose of the drug, some received a high dose of the drug, and some received a placebo instead of AMG 133.Īfter 85 days, placebo recipients gained an average of 1% of their body weight. That may leave patients feeling full for longer periods, curbing hunger.Īmgen’s first clinical trial of AMG 133 involved 110 volunteers. It is not entirely clear how similar drugs assist with weight loss but it is known that similar drugs can slow the movement of food into the intestine. It can help encourage the body to produce insulin and reduce blood sugar levels. The drug functions by interacting with receptors in the human intestine.
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