Biotech Alveus raises $160 million to tackle weight loss maintenance

By Kamal Choudhury

Jan 8 (Reuters) – Alveus Therapeutics said on Thursday it has raised $159.8 million in funding to develop obesity treatments focused on helping patients keep weight off long-term, a problem the company says current therapies fail to address.

The Series A financing round was led by New Rhein Healthcare Investors, Andera Partners and Omega Funds, with participation from Sanofi Capital and others.

About half of patients on current obesity medications stop treatment within a year and 85% discontinue by year two, according to Alveus. Research shows that once the drugs are stopped, most of the lost weight and related health risks return within roughly two years.

Alveus is researching ALV-100, which combines GLP-1 activation, the mechanism behind blockbuster weight loss drugs like Novo Nordisk’s Wegovy, with the blocking of receptors for the GIP protein. The company says this is designed for durable weight loss with fewer doses than existing treatments.

“The market today will move from a quantity of weight loss focus to a quality of weight loss,” CEO Raj Kannan said, adding that Alveus is targeting weight maintenance, better tolerability and improved body composition rather than simply maximizing pounds shed.

Alveus is also developing ALV-200, a selective amylin-based therapy that has entered the regulatory filing stage and is designed to preserve lean muscle during weight loss. Amylin is a hormone that helps control blood sugar and appetite.

Kannan said the company is building for long-term independence, but would consider strategic partnerships after achieving late-stage readiness.

Obesity is projected to affect half the U.S. population by 2030 and is linked to more than 200 health complications, he said.

Over 40% of U.S. adults were obese as of 2024, according to the National Institutes of Health.

(Reporting by Kamal Choudhury in Bengaluru; Editing by Sahal Muhammed)