This article first appeared on GuruFocus.
Roche Holding AG (RHHBY) is beginning to show tangible progress in obesity treatments, after mid-stage trial data suggested its experimental weekly shot delivered meaningfully stronger weight loss than placebo. Patients receiving the drug lost 18% more weight than those in the control group, while almost half of those on the highest dose shed at least 20% of their body weight by week 48. The readout marks the first of several mid-stage updates Roche expects this year as it works to build a competitive position in obesity following its $3.1 billion acquisition of Carmot Therapeutics.
The drug, CT-388, originated from the Carmot portfolio and works in a similar way to Eli Lilly’s (NYSE:LLY) Zepbound, with weight-loss outcomes that appear broadly comparable and potentially stronger than Novo Nordisk’s (NYSE:NVO) Wegovy, according to Jefferies analyst Michael Leuchten. Roche estimated that weight loss could have reached 22.5% if all patients had adhered fully to the dosing schedule, a difference that may point to missed doses during the trial. Gastrointestinal side effects were largely mild to moderate, while 5.9% of participants discontinued treatment due to health impacts, a level Roche described as low for this class of drugs.
Roche said it plans to begin late-stage trials this quarter and intends to test CT-388 both as a standalone therapy and in combination with other obesity treatments. Management noted that weight loss did not appear to plateau by week 48, which could suggest additional reductions with longer treatment duration, while a gradual dose-escalation approach was used to manage side effects. Investors responded positively to the update, with Roche shares rising as much as 1.1% in early Zurich trading and extending gains for the year, even as competition in obesity intensifies from rivals including AstraZeneca and Pfizer.