Roche’s Stock Takes a Hit: 5% Plunge After Underwhelming Drug Trial Results
Roches Weight-Loss Pill CT-996 Faces Setback in Early-Stage Clinical Trials
Roches stock price plummeted 5.4% on Wednesday following the release of underwhelming results from early-stage clinical trials of its weight-loss pill CT-996.
In July, the Swiss pharmaceutical giant generated optimism about CT-996s potential when it announced that the experimental pill had led to a 6.1 percent weight loss compared to a placebo over four weeks.
However, recently released details revealed that the reported results came from a subgroup of just six participants, disappointing investors and sending Roches shares lower on Wednesday.
The Phase 1 trial involved 25 participants, but only six received a placebo for comparison. The 6.1% weight loss figure came from the best performing of the three treatment subgroups.
The second best performing subgroup consisted of seven volunteers, who reportedly achieved 4.6% lower weight loss compared to the placebo.
Roches decision to acquire CT-996 developer Carmot for $2.7 billion in December signaled its ambition to compete in the lucrative weight-loss drug market, which analysts predict could reach $150 billion by the early 2030s.
Despite the setback, Roche remains committed to developing CT-996 and plans to start larger, more rigorous clinical trials next year to collect more definitive data.
Roches rivals, Novo Nordisk and Eli Lilly, rose 4.3% and 2% respectively, further solidifying their leading positions in the weight loss market.