On Friday, Cathie Wood’s Ark Invest made a notable investment move, strategically acquiring shares of the biopharmaceutical giant, Amgen, Inc. (NASDAQ:AMGN), following significant advancements in its weight-loss drug candidate. This investment was made through Ark’s ARK Genomic Revolution ETF (CBOE: ARKG), which purchased 11,360 shares of Amgen. The timing of this purchase proved astute, as Amgen’s stock rallied nearly 12% in response to the positive news, resulting in a transaction valued at approximately $3.54 million.
This acquisition marked a meaningful addition to Amgen’s weighting in ARKG, elevating it to 1.06% within the ETF’s portfolio. With a total of 51,712 shares now held by the ETF, Amgen’s prominence within ARKG is underscored, signaling Ark Invest’s confidence in the company’s growth trajectory.
Amgen’s recent performance was characterized by a double beat reported after the market close on Thursday, coupled with significant progress in its obesity drug pipeline. Notably, while the company discontinued an early-stage oral obesity drug known as “AMG 786,” it unveiled a strategic pivot towards MariTide and several preclinical assets. MariTide, formerly identified as AMG 133, is an injectable drug targeting gut hormones GIP and GLP-1, currently undergoing evaluation in a Phase 2 obesity trial.
Chief Scientific Officer Jay Bradner expressed optimism regarding MariTide’s differentiated profile and its potential to address critical unmet medical needs associated with obesity, related conditions, and diabetes. Investors are eagerly awaiting the release of top-line 52-week data from the Phase 2 study, expected by late 2024. This milestone positions Amgen to capitalize on the burgeoning weight-loss drug market, estimated at an impressive $100 billion.
Despite facing competition from industry stalwarts such as Novo Nordisk and Eli Lilly, Amgen’s strategic shift towards MariTide underscores its commitment to innovation and addressing pressing medical needs. The acquisition of Amgen shares by ARKG reflects market optimism surrounding the company’s promising pipeline and growth prospects.
ARKG closed Friday’s session with a notable 3.51% increase, closing at $25.04. This upward momentum reflects investor enthusiasm regarding the acquisition and Amgen’s potential within the evolving biopharmaceutical landscape.
Ark Invest’s decision to invest in Amgen underscores its belief in the company’s ability to navigate and capitalize on emerging opportunities in the healthcare sector. As developments in Amgen’s obesity drug pipeline unfold, investors will closely monitor the company’s progress and its impact on the broader healthcare industry.
