Roche Holding AG is maintaining a positive outlook on its obesity drug development program, despite recent market reactions to early trial data. Hans Clevers, Roche's head of pharma research and early development, addressed concerns regarding side effects observed in a small study of CT-388, an experimental weight-loss injection. The company's shares experienced a dip following the release of a poster detailing side effects such as nausea, vomiting, and diarrhea.
Confidence in Obesity Pipeline
Clevers stated that Roche is "not alarmed at all" by the reported side effects, emphasizing that no patient discontinued treatment during the CT-388 trial. He added, "This looks as good as any other in this class." Roche is also developing CT-966, an oral weight-loss drug, which Clevers believes has the potential to be "best in class." Detailed side effect data from a small study of CT-966 is expected to be presented at an upcoming medical conference.
Strategic Focus and Market Dynamics
The pursuit of obesity treatments is driven by a rapidly expanding market, projected to reach $130 billion by the end of the decade. Roche's recent acquisition of experimental weight-loss treatments reflects its commitment to this area, particularly after facing setbacks in other drug development programs. Bloomberg Intelligence suggests that safety and side effect profiles will be critical factors as Roche aims to compete with established players like Novo Nordisk A/S.
Diversification in Oncology
In addition to its efforts in obesity, Roche is strategically narrowing its focus to five core therapy areas: cancer and hematology, neurology, immunology, ophthalmology, and cardiovascular and metabolism. The company is also actively seeking opportunities in antibody-drug conjugates, a field exemplified by AstraZeneca Plc’s Enhertu. "We're currently actively looking for partners in this area," Clevers confirmed.
