Roche’s Obesity Drug Puts Novo Nordisk and Eli Lilly on Alert

Shares of Novo Nordisk and Eli Lilly fell on Wednesday following the announcement of promising early-stage trial data from Roche’s latest obesity drug candidate. Roche reported that its experimental once-daily pill demonstrated an average weight loss of 6.1% over four weeks in obese patients without Type 2 diabetes during a Phase I trial. 

This development intensifies the competition in the rapidly expanding weight loss drug market, offering a potential alternative for patients who prefer pills over injections.

Roche’s announcement sent its shares up by 5.87%. At the same time, shares of Wegovy-maker Novo Nordisk fell by 3.77%, while Zepbound producer Eli Lilly experienced a 2.7% drop in premarket trading. Zealand Pharma, another Danish biotech company working on obesity treatments, saw its shares decline by over 5.6%.

The new oral Roche drug showed significant weight loss benefits in a short period, raising hopes for its potential use in chronic weight management and glycemiccontrol. Roche’s strategic acquisition of CarmotTherapeutics in January has bolstered its portfolio in the weight loss sector. In May, Roche revealed early-stage data for another weight loss drug candidate, CT-388, further underscoring its commitment to developing innovative obesity treatments. 

Despite these advancements, analysts have warned that it may take several years before these oral obesity treatments become widely accessible. 

The competitive landscape in obesity treatment continues to evolve rapidly, with Roche’s new drug trials putting pressure on established players like Novo Nordisk and Eli Lilly, which have dominated the market with injectable treatments.