Raphael Stevens

Shares of Amgen fell as analysts chewed over bone density loss data from an early-stage trial on its experimental weight loss injection, MariTide.
While some analysts called the additional data a potential safety risk, others said the share move was an overreaction and that more data on a larger group of patients is needed.
The drug is a promising potential competitor in the weight loss drug market that is designed to be taken monthly rather than once a week like existing injections from Novo Nordisk and Eli Lilly. 

Shares of Amgen fell more than 7% Tuesday as analysts chewed over bone density loss data from an early-stage trial on its experimental weight loss injection, MariTide.
One analyst said the additional data suggests a new potential safety risk tied to the drug. But others said the share move was an overreaction, and that more data on a larger group of patients is needed.

Amgen did not immediately respond to a request for comment on the data 
The drug is a promising potential competitor in the weight loss drug market. It is designed to be taken monthly, rather than once a week like existing injections from Novo Nordisk and Eli Lilly, and promotes weight loss differently.
Wall Street is waiting for crucial phase two trial results on MariTide, which are set to be released before the end of the year. 
Analysts on Tuesday cited additional publicly available data from a phase one study showing that the highest dose of MariTide – 420 milligrams – was linked to roughly 4% loss of bone mineral density over 12 weeks. A decrease in bone mineral density refers to when bones lose calcium and other minerals, making them weaker and more likely to break. 
In a research note, Cantor Fitzgerald analyst Olivia Brayer called the data a “big unknown” and suggested it could be a potential risk associated with drugs like MariTide, which work by using so-called GIPR antagonism. Amgen’s injection works by blocking a gut hormone receptor called GIP but also activates another appetite-suppressing hormone called GLP-1. 

That’s unlike Eli Lilly’s obesity drug, Zepbound, which activates GIP and GLP-1. Wegovy activates GLP-1 but does not target GIP, which may also affect how the body breaks down sugar and fat.
“On one hand, patients could naturally lose bone mineral density during weight loss treatment,” Brayer wrote. 
But Brayer said, “on the other hand, this could be a non-starter because there seems to be a dose-dependent increase” in bone mineral density loss. That means patients appear to lose more bone mineral density the higher the dose they take. 
Meanwhile, Jefferies analyst Michael Yee wrote in a note that the additional MariTide data seems to be a “non-issue.” Yee acknowledged that people on the highest dose of the drug had declines in bone density, but said “the data is all over the place.” 
For example, he pointed to data on a lower dose of the drug showing that bone density actually increased by 1% before normalizing. Yee added that bone mineral density “changes” are a known side effect of weight loss drugs in the first one to three months of use because people lose significant weight quickly. 
Amgen is also aware of the “hypothetical concern” of bone mineral density loss, Yee said, citing the firm’s discussions with management.  
“While obviously not saying there is zero effect, we are saying we don’t think there is a concern, significant [bone mineral density] drop sustained over time, or clinical risk or concern,” Jefferies said. “Overall we don’t believe there is an issue and the effect is normalized over time.”
BMO analyst Evan Seigerman wrote in a note Tuesday that “We’d be cautious about making an overarching judgment on the safety profile of MariTide with this data.” 
He added that “we’d be more comfortable judging the safety profile from a larger cohort of patients.” There may not be a clear answer until Amgen releases full phase two trial data on the drug. 
“Our view on MariTide hasn’t changed with this and if anything we see the selling as overdone,” Seigerman wrote.  More

A Spirit flight was struck by gunfire on Monday and a flight attendant was injured while trying to land at Port-au-Prince’s airport.
Spirit, American and JetBlue have suspended Haiti flights.
The U.S. State Department warned travelers about “armed violence” in the area.

Spirit Airlines airplanes at Fort Lauderdale-Hollywood International Airport (FLL) in Fort Lauderdale, Florida, US.
Eva Marie Uzcategui | Bloomberg | Getty Images

The Federal Aviation Administration on Tuesday banned U.S. civilian flights to and from Haiti for 30 days after a Spirit Airlines airplane was struck by gunfire trying to land in Port-au-Prince a day earlier.
The FAA’s ban also prohibits U.S. flights from traveling under 10,000 feet in Haiti’s airspace.

On Monday, Spirit Airlines Flight 951 from Fort Lauderdale, Florida, diverted to Santiago in the Dominican Republic at around 11:30 a.m. after it was damaged by gunfire, the airline said. Spirit said one flight attendant on board “reported minor injuries” and that no passenger injuries were reported.
American Airlines said one of its flights from Port-au-Prince to Miami was hit by gunfire on Monday and that it landed uneventfully, with no injuries reported.
“Out of an abundance of caution, a post-flight inspection was completed, indicating the exterior of the aircraft had been impacted by a bullet,” American said in a statement.
American has suspended flights to the Haitian capital through Feb. 12. JetBlue Airways has also paused service to Haiti.
The U.S. State Department on Monday said that the embassy in Port-au-Prince “is aware of gang-led efforts to block travel to and from Port-au-Prince which may include armed violence, and disruptions to roads, ports, and airports.” More

Boeing said it will take weeks before it can fully restart factories after a more than seven-week machinist strike.
The manufacturer handed over 14 aircraft in October, the fewest since November 2020, during the pandemic and the tail end of a worldwide grounding of its bestselling 737 Max.
Machinists are required to return to their jobs no later than Tuesday.

An employee works in the cockpit of a Boeing P-8 Poseidon maritime patrol aircraft on the production line at Boeing’s 737 factory in Renton, Washington, November 18, 2021.
Jason Redmond | Reuters

Boeing’s more than 32,000 machinists who were on strike are required to return to their factories no later than Tuesday, but getting factories humming again will take weeks, the manufacturer said.
Boeing machinists approved a new contract last week that included 38% pay raises over four years and other improvements, ending a more than seven-week strike that halted output of most of Boeing’s aircraft production. They first walked off the job on Sept. 13, turning down a proposal with 25% raises.

The company said Tuesday that it handed over 14 jetliners in October, the fewest since November 2020, during the depths of the pandemic and the tail end of the worldwide grounding of Boeing’s 737 Max in the wake of two fatal crashes. Nine of the deliveries last month were 737 Maxes. A spokesman said workers unaffected by the strike performed the delivery procedures.
Boeing’s troubles have put it further behind Airbus this year. The U.S. manufacturer handed over 305 airplanes so far this year compared with its European rival’s 559 aircraft.
As the workers return, Boeing has to assess potential hazards, restate machinist duties and safety requirements, and ensure that all training qualifications are current, a spokesman said.
“It’s much harder to turn this on than it is to turn it off,” CEO Kelly Ortberg said during the company’s quarterly call last month. “So it’s absolutely critical that we do this right.”
The company is resuming production in Washington state and Oregon for the 737 Max, 767 and 777 programs, as well as military versions of its aircraft. Boeing’s 787 Dreamliner production continued during the strike because those planes are made in a nonunion factory in South Carolina.
Despite the strike pause, Boeing continued to sell dozens of aircraft in October, with 63 gross orders, two shy of September’s total. Forty of them are 737 Max 8s for the Avia Solutions Group. It also handed over 10 787 Dreamliners to LATAM Airlines.

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Family offices — the in-house investment and service firms of high-net-worth families — are becoming more confident about finding and negotiating their own private equity deals.
Half said they plan to invest directly in a private company without a private equity fund over the next two years, according to a family office survey from Bastiat Partners and Kharis Capital.

Closeup of late 40s handsome executive man driving in the back seat of a luxury limousine and using a smart phone. 
Gilaxia | E+ | Getty Images

A version of this article first appeared in CNBC’s Inside Wealth newsletter with Robert Frank, a weekly guide to the high-net-worth investor and consumer. Sign up to receive future editions, straight to your inbox.
Family offices are increasingly bypassing private equity funds and buying stakes in private companies directly, according to a new survey.

Half of family offices plan to do “direct deals” — or invest in a private company without a private equity fund — over the next two years, according to a family office survey from Bastiat Partners and Kharis Capital.
As they grow in size and sophistication, family offices are becoming more confident about finding and negotiating their own private equity deals. Since family offices — the in-house investment and service firms of high-net-worth families — are typically founded by entrepreneurs who started their own companies, they often like to invest in similar private companies and leverage their expertise.
More than half (52%) of family offices surveyed prefer doing direct deals through syndicates, where other investors take the lead, “reflecting a cautious approach and reliance on the expertise of established sponsors,” according to the report.
“Family offices are being gradually recognized as an economic powerhouse in private markets,” according to the report.
The big challenge for family offices as they do more direct deals is so-called deal flow, or the volume of possible deals. Since most deals are either unattractive or not suitable, family offices may see 10 deals or more for every one that works, according to the report.

At the same time, family offices fiercely protect their privacy and prefer to remain largely unknown to the public. Without a public profile, they aren’t likely to be included in deal offerings or banker calls and miss out on potential investments. Fully 20% of family offices surveyed cited “quality deal flow” as a primary concern.
One solution, according to the report, is for family offices to start developing more public profiles and network with each other more to attract deal flow. According to the survey, 60% view networking with other family offices as “important,” and 74% are “eager for more introductions.”

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The other challenge for family offices doing direct deals is due diligence, according to family office experts. When a private equity fund or company invests in a private company, they often have teams of bankers or in-house experts able to dissect a company’s financials and its prospects. Family offices typically lack the infrastructure for rigorous due diligence and risk buying into troubled companies.
To formalize their deal process, more family offices are creating boards of directors and investment committees. According to the survey, 54% of North American family offices have established investment committees to help vet investments.
When it comes to their preferred private investments, they like to venture “off the beaten path,” focusing on niche and emerging asset classes. Family offices, for instance, are increasingly investing in real estate tax liens, fertility clinics, sale-leasebacks of real estate, whiskey aging and litigation financing.
“These approaches provide family offices with access to private investments that offer attractive returns, cash yields and low correlation to traditional markets,” according to the report.

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