Stocks to Watch: Potential Challengers to Novo Nordisk and Lilly’s Obesity Dominance.

Stocks to Watch: The obesity market has seen significant growth since Novo Nordisk’s Wegovy and Eli Lilly’s Zepbound received FDA approval. However, these companies face supply constraints and product shortages, leading to delays in fulfilling orders.

Goldman Sachs predicts the US obesity market will reach $100 billion by the end of this decade. To capitalize on this growing demand, several biotech/pharma companies are developing obesity drugs, with four stocks predicting to break the duopoly in the long run.

Viking Therapeutics

Viking Therapeutics’ Obesity Drug Evaluation

• Viking Therapeutics is testing oral and subcutaneous formulations of its obesity drug, VK2735.
• The drug has shown superior weight reduction capabilities in both clinical studies.
• In February, a mid-stage study showed a 14.7% mean weight reduction in patients treated with VK2375.
• In March, an early-stage study showed promising dose-dependent reductions in mean body weight after 28 days of daily dosing.
• Viking plans to meet with the FDA to discuss the results and advance both formulations into further development.

Altimmune

Altimmune’s Pemvidutide Pipeline

• Altimmune, a clinical-stage company, has one candidate, pemvidutide, being evaluated for obesity and MASH.
• In December, positive data from the phase II MOMENTUM study showed dose-dependent reductions in mean body weight after 48 weeks of treatment.
• Patients receiving the 1.2mg dose achieved a mean weight loss of 10.3%, while those receiving the 2.4mg dose achieved a mean weight loss of 15.6%.
• Patients in the 2.4mg dose group observed a near-linear trajectory of continued weight loss.
• Management is preparing for an end-of-phase II meeting with the FDA in late Q3 2024.

Roche

Roche’s Obesity Market Acquisition

• Roche acquired Carmot Therapeutics for $2.7 billion in January, adding a differentiated portfolio of incretins.
• Early-stage study showed positive results from CT-388, achieving a mean weight loss of 18.8% over 24 weeks.
• CT-388 treatment was beneficial for type II diabetes patients and was also effective for other diseases.
• Roche is also evaluating CT-996 and CT-868 in separate early-stage studies.
• The incretin-based portfolio could be expanded to other diseases where incretins play a role.

Amgen

Amgen’s Approach to Obesity Treatment

• Amgen is focusing on its lead obesity candidate, MariTide (maridebart cafraglutide), which is being evaluated in a phase II study.
• The drug is being administered via injection, but is being tested for monthly or less frequent use.
• Amgen completed an interim analysis of data from a mid-stage study MariTide, and initiated activities to expand manufacturing capacity.
• The top line 52-week data from the mid-study is expected in late 2024.
• Amgen plans to conduct a comprehensive phase III program on the candidate across obesity, obesity-related conditions, and diabetes.

The obesity market is expected to grow rapidly, leading to increased competition. Companies like Novo, Lilly, and Zepbound are entering the market with promising products. Despite their massive infrastructures, proper resource use could help these companies expand their presence. Moderna, for example, has taken on pharma giants like Pfizer with its COVID-19 vaccine.

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The obesity market is expected to grow rapidly, leading to increased competition. Companies like Novo, Lilly, and Zepbound are entering the market with promising products. Despite their massive infrastructures, proper resource use could help these companies expand their presence. Moderna, for example, has taken on pharma giants like Pfizer with its COVID-19 vaccine.

The obesity market is expected to grow rapidly, leading to increased competition. Companies like Novo, Lilly, and Zepbound are entering the market with promising products. Despite their massive infrastructures, proper resource use could help these companies expand their presence. Moderna, for example, has taken on pharma giants like Pfizer with its COVID-19 vaccine.

The obesity market is expected to grow rapidly, leading to increased competition. Companies like Novo, Lilly, and Zepbound are entering the market with promising products. Despite their massive infrastructures, proper resource use could help these companies expand their presence. Moderna, for example, has taken on pharma giants like Pfizer with its COVID-19 vaccine.