Shares of Roche climbed on Wednesday after the company reported positive results for its experimental weight loss pill, CT-996. The drug showed promising results in helping patients lose an average of 6.1% of their body weight in a four-week study. Roche is developing the pill to treat obesity and type 2 diabetes and plans to move forward with mid-stage trials based on these preliminary results. The drug is part of the GLP-1 hormone mimicking family, similar to popular injections like Ozempic, Wegovy, Mounjaro, and Zepbound, and has shown to be safe and well-tolerated with mild side effects like nausea and diarrhea.
The ongoing trial for CT-996 involves around 100 overweight or obese individuals and is focused on testing the safety and impact of different doses of the drug on weight and blood sugar levels. Roche intends to begin the final stage of trials towards the end of 2024, targeting people with both type 2 diabetes and obesity. While shares of Roche initially surged by more than 7% in early trading, gains later settled around 5%. It is likely to be several years before CT-996 or any oral weight loss pill from Roche or other companies reaches the market, as challenges in effective dosing and managing side effects remain.
The weight loss drug market is anticipated to be worth $150 billion by the early 2030s, reflecting a significant increase from previous estimates of $100 billion. Roche is part of a group of pharmaceutical companies racing to develop effective oral weight loss drugs in the GLP-1 class. Novo Nordisk currently holds the only approval for an oral GLP-1 drug in the U.S. with Rybelsus, although primarily for type 2 diabetes. Other companies like Eli Lilly, Pfizer, and Structure Therapeutics are also working on promising oral weight loss pills in the same class. Lilly’s orfoglipron has shown positive results in mid-stage trials, while Pfizer and Structure Therapeutics are also progressing with their own developments.
The development of an effective and safe oral weight loss pill poses challenges in delivering the drug at doses that are both impactful and tolerable for patients. Novo Nordisk’s Rybelsus holds an advantage in the market with its existing approval, while other companies are striving to catch up with their own innovations. Pfizer’s Danuglipron, Lilly’s orfoglipron, and Structure Therapeutics’ GSBR-1290 are all competing in this space with promising results and advancements in clinical trials. Despite the growing evidence of the potential benefits of weight loss drugs beyond diabetes and obesity, it may still take some time before these products are available for widespread use in the market.
