Amgen (NASDAQ:AMGN) stock is trending and up about 12% as of this writing. The shares are rallying after the drugmaker’s CEO said he was encouraged by preliminary data on Amgen’s weight-loss drug.

These comments also sparked a decline in shares of Novo Nordisk (NYSE:NVO) stock. Novo Nordisk has developed multiple weight-loss drugs.

Amgen Raises Expectations for Weight-Loss Drug

Discussing interim data from a Phase 2 trial of the company’s weight-loss drug, Amgen CEO Robert Bradway said “we are very encouraged with results that we’ve seen thus far.” The firm did not release any of the results.

Bradway added that Amgen is “confident” that the injectable treatment, called MariTide, will provide benefits to patients. The CEO also noted that Amgen is rapidly getting ready for a Phase 3 trial of MariTide. The firm expects to release final Phase 2 data later this year.

An injectable drug made to be administered by patients themselves, MariTide will likely be taken once a month at most. Like many other weight-loss drugs on the market, MariTide suppresses appetite by influencing a gut hormone receptor known as GLP-1.

Based on some data, scientists believe MariTide could enable patients to stay thinner even after discontinuing the treatment. That may be a differentiating factor for the treatment.

The Price Action of Novo Nordisk and Amgen

In early trading today, NVO stock is down about 1% after retreating 4% yesterday. Novo has developed successful weight-loss drugs like Ozempic and Wegovy. It’s also working on bringing a new weight-loss treatment called amycretin to market.

As of this writing, shares of AMGN stock are up 15% for the last five trading days and up 6% so far this year.

On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines