Is this company the biggest dark horse in the chronic weight management space?
Is this company the biggest dark horse in the chronic weight management space?
The weight-loss market is growing rapidly, and while long-term projections differ on how large it will become, they generally agree that it will maintain its upward trajectory at least over the medium term. Investors can capitalize on this industry's growth by buying shares of those companies likely to emerge as top players. Right now, it looks likely that Eli Lilly (LLY -0.28%) and Novo (NVO -0.84%), the current market leaders, could maintain their lead over the next five years or so. However, other drugmakers are making progress in this field and are worth considering for investors. One of them is Regeneron Pharmaceuticals (REGN -0.19%).
Regeneron's differentiated approach
Regeneron has at least two promising weight loss medicines in its pipeline. One of them is called olatorepatide. Regeneron licensed this medicine from a China-based company. Olatorepatide mimics the actions of the GLP-1 and GIP hormones, placing it in the same broad category as Eli Lilly's market-leading drug, Zepbound.
However, olatorepatide could be particularly attractive for one reason: It appears to display better gastrointestinal (GI) tolerability than competing medicines. In a Phase 3 study conducted in China, olatorepatide led to a mean weight loss of up to 19% over 48 weeks. That's already impressive enough.
But as Regeneron pointed out, olatorepatide also had lower rates of GI-related adverse events -- such as nausea and vomiting -- than what some competing drugs achieved in comparable Phase 3 studies. Regeneron still has to run late-stage clinical trials in the U.S. before it can earn approval in the country.
However, olatorepatide's strong performance in Chinese studies makes it a notable contender in the weight loss market. Regeneron's other leading candidate is trevogrumab. This isn't a drug designed to induce weight loss. Rather, Regeneron is developing trevogrumab to be administered alongside anti-obesity medicines to help patients preserve lean mass as they lose weight.
In a Phase 2 study, trevogrumab, administered alongside Novo's semaglutide, led to lean mass preservation of up to 42.5% compared with just 7.3% in patients receiving semaglutide plus placebo. Trevogrumab is yet another differentiated product that could help Regeneron carve out a niche in the rapidly growing weight loss market.
REGN Regeneron Pharmaceuticals
$789.24-$1.50 (-0.19%)
Averytin News Financial update.