Amgen (AMGN)

The sleeper story is Meritide's pivot to capturing the obesity switching market - their new Phase III study targets patients dissatisfied with weekly injectables, positioning quarterly dosing as maintenance therapy rather than competing head-to-head on initial efficacy. The obvious growth driver narrative (24% growth from six key products) is real but masks margin compression from profit-sharing deals that will persist in future quarters. The binding constraint isn't R&D capacity or manufacturing - it's the structural cost burden from partnership economics hitting margins just as they ramp the most expensive clinical program in company history. Most revealing quote from Peter: 'We expect these factors will continue to negatively impact the cost of sales in future quarters.' My view changes if they can quantify when profit-sharing headwinds stabilize or if Meritide switching data shows superiority over maintenance dosing of existing weekly therapies.