By Maggie Fick LONDON (Reuters) -Swiss drugmaker Roche signalled its ambition to join Eli Lilly and Novo Nordisk at the top of the booming weight-loss market on Monday, as it advanced one of its experimental obesity drugs into a late-stage trial. Shares were up 2.8% in afternoon trading, outperforming a broadly unchanged European healthcare index. […]
Health
Roche, muscling into weight-loss drug race, advances obesity treatment to late-stage trial
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By Maggie Fick
LONDON (Reuters) -Swiss drugmaker Roche signalled its ambition to join Eli Lilly and Novo Nordisk at the top of the booming weight-loss market on Monday, as it advanced one of its experimental obesity drugs into a late-stage trial.
Shares were up 2.8% in afternoon trading, outperforming a broadly unchanged European healthcare index.
Roche’s decision to begin a phase III trial of its experimental obesity drug CT-388 marks a major step in its push to break into the fast-growing obesity drug market that some analysts estimate will be worth $150 billion annually by the early 2030s.
Roche acquired this drug candidate in late 2023 when it acquired U.S. biotech company Carmot Therapeutics in its first effort to challenge the dominant makers of weight-loss drugs Novo Nordisk and Eli Lilly.
Roche’s shares had jumped nearly 5% when it reported significant weight-loss results from an early-stage trial of this drug.
THREE DRUGS BEING TRIALLED COULD BE BLOCKBUSTERS
At an investor day in London, company executives laid out why they believed Roche could seize market share from Novo and Lilly, the first entrants to the obesity drug race, showing their understanding of the market’s unique dynamics. This included the fact that much of it remains a cash-payer market, with patients paying out of pocket without insurance reimbursement.
Roche pharmaceutical division head Teresa Graham told investors the company planned to secure a strong entry to the lucrative obesity-drug market with competitive products by 2030.
It has six drug candidates in trials for the treatment of obesity and related conditions like type 2 diabetes and hypertension, which the company estimates could all be launched by 2030. Roche forecasts three of them could become blockbusters with annual sales over $1 billion.
“Our goal is to become a Top 3 player (in the obesity drug market), and I want you to know I’m serious about this goal,” Graham said.
TAKING OTHER STEPS TO BOLSTER OBESITY DRUG PIPELINE
Roche has taken other steps to bolster its obesity drug pipeline.
Over the past 18 months, it has taken a systematic approach to shaping its obesity strategy in recognition that the market is fragmenting, said Roche global head of cardiometabolic research and development Manu Chakravarthy.
As a result Roche is developing a range of drugs to serve patients with various weight-loss-related health needs, Chakravarthy said in an interview.
Its drug candidates target four different hormones affecting appetite and metabolic regulation, which he called the “foundational targets” of metabolic diseases.
Roche in March acquired Zealand Pharma’s experimental weight-loss drug petrelintide for up to $5.3 billion. It also hired Morten Lammert from rival Novo Nordisk as its global therapeutic area head for cardiovascular, renal and metabolism to oversee commercial strategy for its obesity drugs in development.
Then last week it agreed to buy U.S. biotech firm 89bio for up to $3.5 billion, joining a race to offer new liver disease treatments that complement obesity drugs.
(Reporting by Maggie Fick; editing by Danilo Masoni, Louise Heavens, Bernadette Baum and Jane Merriman)