Wall Street’s keen interest in next-generation treatments for obesity and diabetes has intensified following the release of new clinical-trial data by pharmaceutical companies. The data includes weight-loss pills in development that could serve as alternatives to popular injectables such as Wegovy and Ozempic.
Novo Nordisk’s Wegovy and Ozempic contain semaglutide, a medicine that has been developed into a high-dose, once-daily pill version. The new pill resulted in a 15.1% weight loss when used in combination with diet and exercise by adults with obesity or overweight and without type 2 diabetes.
Eli Lilly’s once-daily pill, orforglipron, achieved an average weight loss of up to 14.7% over 36 weeks when used by adults with obesity or overweight, according to data shared at the American Diabetes Association’s annual scientific conference.
Pfizer has announced that it will terminate the development of its lotiglipron treatment due to early clinical data that showed the potential for elevated liver enzymes in some patients. However, it will continue the investigation of its danuglipron investigational pill for obesity and type 2 diabetes and move it towards late-stage development.
Oral Weight-Loss Drugs: A Game-Changer for Obesity and Type 2 Diabetes Treatment
Dr. Robert Gabbay, the Chief Scientific and Medical Officer of the ADA, has praised oral weight-loss drugs for their “increased accessibility” and customizable treatment for people struggling with obesity and type 2 diabetes.
According to a survey by health news organization Stat and the Harris Poll, over half of Americans are concerned about their weight. Furthermore, 50% are interested in taking weight-loss drugs, with nearly half willing to spend up to $100 monthly on these medications.
Several of the pills currently in development mimic the effects of gut hormones that control appetite and blood sugar levels. These GLP-1 receptor agonists work similarly to injectable medications such as Wegovy, Ozempic, and Mounjaro. Given the high demand for these injections, patients have turned to knockoff compounds containing different active ingredients. Such compounds have caused the FDA to issue warnings against their use.
Eli Lilly’s Tirzepatide Produces Average Weight Loss of 15.7%
Eli Lilly’s tirzepatide, which has already been FDA-approved as Mounjaro for people with type 2 diabetes, has shown promising results in a study conducted on adults with obesity or overweight and type 2 diabetes. The study revealed that at the highest dose, tirzepatide produced an average weight loss of 15.7%. These findings were presented at the diabetes conference, and according to BMO Capital Markets analysts, the “wall of data” on efficacy, tolerability, cross-trial comparisons, and other data sets it apart from the competition. This is indicative of Lilly’s ability to build a moat around its metabolic franchise, and specifically around Mounjaro.
Pfizer Shares Down 4% After Lotiglipron Setback
Investors were not kind to Pfizer following a setback with its lotiglipron treatment, with the company’s shares dropping by 4% by midday. Despite this setback, BMO Capital Markets analysts remain optimistic about Pfizer’s progress with danuglipron, saying that the company can remain competitive.
Promising Results for Type 1 Diabetes Treatment from Vertex Pharmaceuticals
Vertex Pharmaceuticals also announced promising results from a small trial of its VX-880 investigational therapy for type 1 diabetes. The company stated that all patients receiving the therapy had improved glycemic control while reducing or eliminating insulin use, producing their own endogenous insulin in the process.
American Diabetes Association recommends screening for nonalcoholic fatty liver disease
The American Diabetes Association (ADA) is now recommending that all adults with type 2 diabetes or prediabetes should be screened for nonalcoholic fatty liver disease (NAFLD). This new recommendation is a positive development for companies that are developing treatments for this condition.
According to analysts, companies such as Madrigal Pharmaceuticals Inc. (MDGL), Akero Therapeutics Inc. (AKRO) and 89bio Inc. (ETNB) are among those developing treatments for fatty-liver diseases. The ADA’s recommendation is “another positive for the field,” according to a report by Evercore ISI analysts.
NAFLD is a common condition that occurs when too much fat accumulates in the liver, which can lead to inflammation and damage to liver cells. It is estimated that up to 25% of adults in the United States have NAFLD, and it is closely linked with type 2 diabetes and obesity.
As these companies move forward with their development of treatments for NAFLD, the new recommendation by the ADA may provide a boost in support and funding. With such a significant portion of the population affected by this condition, it is important to continue to invest in research and development.
