The pharmaceutical industry’s quest to dominate the lucrative market for new obesity medicines may face a formidable challenger in emerging biotech company Structure Therapeutics. According to initial data, Structure’s obesity pill has exhibited a significant potential for weight loss in a small Phase 1b trial.
In the study, Structure’s drug, known as GSBR-1290, demonstrated an impressive 5.4% reduction in body weight among patients receiving the highest tested dose. In contrast, the placebo group experienced only a 0.5% decrease. The trial involved 24 healthy overweight or obese individuals who underwent four weeks of treatment.
However, a larger ongoing Phase 2a trial evaluating the same drug has experienced a delay due to a data collection error. The results of this more extensive study are now expected in early next year and will provide further insight into GSBR-1290’s effectiveness over twelve weeks of treatment.
Presently, the market for GLP-1 obesity medications is dominated by costly injectable options such as Novo Nordisk’s Wegovy. Analysts emphasize that the introduction of more affordable and convenient pill formulations could enhance patient accessibility while expanding the overall market potential.
Various pharmaceutical giants are actively pursuing oral obesity treatments as well. For instance, Eli Lilly is developing an obesity pill called orforglipron, while Pfizer is testing a competitor known as danuglipron. While Structure Therapeutics’ early-stage study showcases the competitiveness of their product, GSBR-1290, against the offerings from established pharmaceutical companies, further clarity is expected upon release of the delayed larger trial results next year.
Jared Holz, a healthcare trading desk strategist at Mizuho, acknowledges that GPCR still lags behind Eli Lilly and Novo Nordisk in this therapeutic category. However, he suggests that GPCR’s oral therapy option may help bridge the gap, potentially reaching the market just a year or two behind the industry giants.
Similar to Lilly, Novo, and Pfizer’s drugs, GSBR-1290 belongs to the GLP-1 receptor agonist class. These medications emulate natural hormones, influencing insulin release, blood sugar levels, and satiety sensations after meals, among other metabolic processes.
Structure Shares Surge Following Promising Results of GSBR-1290 Trial
In a recent study, Leerink Partners analyst David Risinger reported significant progress in the development of Lilly’s experimental drug, orforglipron. During an early-stage Phase 1a trial, orforglipron demonstrated a promising placebo-adjusted weight loss of 3.6%. In comparison, GSBR-1290, another drug being tested, showcased a weight loss of 4.9% at the highest dosage. These findings offer hope for potential breakthroughs in weight loss treatments.
Furthermore, in a more extensive 36-week-long Phase 2 trial conducted by Lilly, patients treated with orforglipron achieved an impressive 14.7% reduction in their body weight. This outcome signals the drug’s effectiveness and its potential to address the global obesity epidemic.
On the other hand, Pfizer’s danuglipron requires administration twice daily, suggesting potential downsides for its commercial viability. Risinger’s analysis confirms that GSBR-1290 has a competitive advantage since it only requires once-daily administration.
The positive results of the trial have also had a significant impact on Structure shares, which rose by over 36% during Friday morning trading and even reached as high as a 100% increase during premarket hours. To further bolster its operations and ensure continued progress, Structure recently announced a private placement equity financing of $300 million, securing its financial stability until the end of 2026.
One critical aspect of this drug class is its tolerability for patients, considering the common adverse effects such as nausea and vomiting. Fortunately, the data from the early trial indicates that patients tolerated orforglipron well, with no participants discontinuing its use due to adverse events. Among the six patients exposed to the highest dosage, half experienced mild adverse events, while the other half reported moderate adverse events.
In addition to the ongoing trials, Structure is currently conducting a Phase 2a trial for GSBR-1290. However, the company recently disclosed a data collection error related to one aspect of this trial. Consequently, certain data will not be available until the first half of 2024, while other data will be released in the latter half of the fourth quarter of 2023.
These developments highlight the potential of GSBR-1290 as a groundbreaking weight loss drug and its positive impact on Structure’s growth and market value. With promising trial results and ongoing research, Structure is well-positioned to contribute significantly to the future of weight management therapies.
