Inside Obesity Therapeutics: Trends, Triumphs and Tough Questions
Over the last year, it’s been impossible to scroll through social media without stumbling across the word ‘Ozempic’.
In fact, the term Ozempic (which is actually a drug developed by Novo Nordisk) has been the subject of juicy gossip blogs speculating which celebs might be using it to shed pounds. But beyond all the tabloid buzz, Ozempic’s rise signifies a seismic shift in global health, welcoming an entirely new era in the battle against obesity.
At this very moment, obesity stands as one of the most pressing healthcare challenges in the world, affecting over 25% of Brits and a staggering 42% of Americans!
While obesity is not a new concern per se, our understanding of it has evolved significantly in recent years. That’s ever since those in Life Sciences have peeled back the layers to reveal obesity as a complex interplay of environmental, behavioral and genetic factors. As a result, managing obesity is now understood to be equally puzzling, meaning that reliable treatment options are a top priority.
Leading the charge in this arena are heavyweights like Eli Lilly and Novo Nordisk. They’ve both strategically bolstered their arsenals through acquisitions while spearheading groundbreaking GLP-1 and GIP drugs. But, as the field is abuzz with activity, with a flurry of new drug candidates heading into clinical development, the competition is intensifying.
With that in mind, for this month’s newsletter, we’re going to dive headfirst into this competitive and evermore lucrative landscape, exploring the latest clinical trials, acquisitions, and investments in the space. Buckle up, and let’s get into it!
With the spotlight shining brightly on obesity therapeutics, it’s no surprise that over 143 new molecules have entered clinical development, with multiple global pharmaceutical companies crafting their own versions of GLP-1 and GIP receptors, hoping to strike gold.
But why the rush for these particular drugs? Well, these receptors have proven their value by taming appetites and balancing energy levels. Just look at Novo Nordisk and Eli Lilly – their blockbuster drugs have netted them billions in sales. Now, with projections for the sector expected to reach over $100 billion per year, other Life Sciences businesses are jumping in on the action, eager to cash in on the next big obesity buster.
Along with all of this activity, there’s a whirlwind of excitement surrounding several clinical trials in the obesity sphere. For starters, BioAge is putting their muscle-preservation drug, Azelaprag, to the test alongside Eli Lilly’s Zepbound. Then Boehringer Ingelheim and Zealand Pharma, who’ve been in the obesity battle since 2011, are moving forward with their innovative Survodutide, a drug targeting not only the GLP-1 receptor but also the glucagon receptor.
And that’s not all. Viking Therapeutics is making waves with their new drug, VK2735. In fact, their clinical trials left jaws dropping with outcomes exceeding expectations, boasting nearly double the anticipated 8% weight loss in participants!
Then, of course, there are the two industry leaders, Eli Lilly and Novo Nordisk, who, despite their success, are not slowing down. For Novo, this entails a promising new oral drug, Amycretin, which, in recent trials, stood toe-to-toe with their successful injectable, Wegovy, achieving an impressive 12% reduction in body weight. Meanwhile, Lilly’s new experimental drug, Orforglipron, is turning heads after Phase II trials showcased a whopping 14.7% weight reduction.
But things aren't stopping there. Roche is making moves to join the obesity drug rush after acquiring Carmot Therapeutics. To do so, the pharmaceutical company is rearranging their early-stage pipeline, dropping three oncology candidates and five neurological drugs, including two aimed at Alzheimer’s disease.
Amongst all this development, which is fueled by such high demand, industry hotshots Eli Lilly and Novo Nordisk have struck a deal with insurer Cigna, aiming to rein in the costs of coveted medications like their obesity drugs, Zepbound and Wegovy.
As it currently stands, employers are often finding themselves footing hefty bills for medications, thanks to terms like ‘average discounts’. What that means is that they can end up paying more than what a pharmacy charges, sending their healthcare costs soaring.
The good news is that Cigna’s move will cap annual price increases for GLP-1 drugs at 15%, both for employers and for plans involved in weight loss management. Essentially, the insurer is offering a financial safety net – a first of its kind in the market for these types of drugs.
But why is this such a big deal? Well, current health plans are having to deal with weight loss drug costs skyrocketing by 40%-50% annually. By offering a 15% cap on price increases means these highly sought-after GLP-1 drugs will become much more affordable.
For employers, they’ll be able to shield themselves from the surging costs of GLP-1 drugs, but more importantly, the impact of this price cap will improve access for heaps of patients. See, these life-changing therapies, once out of reach for so many due to their sky-high price tags and ongoing shortages, are now within grasp.
To round up this newsletter, we obviously had to include the big shots’ most recent moves in the obesity space…
Towards the end of last year, Eli Lilly caught everyone’s attention with their strategic move: investing in startup biotech OrsoBio. The reason being is that OrsoBio is doing things a little bit differently. Instead of doubling down on GLP-1 drugs like everyone else, they’re venturing into uncharted territory, exploring other drug candidates to broaden obesity solutions.
The biotech plans to improve existing obesity therapies by formulating complementary drugs that push the boundaries of treatment options and address patients' unmet needs.
And keeping the competition piping hot, earlier this year, Novo Nordisk pulled off a savvy move by striking a deal with EraCal Therapeutics, adding another ace to their obesity drug pipeline. The difference here is that EraCal isn’t just your average startup – they’re a biotech brainchild born out of Harvard University and Zurich University.
The startup's goal is to revolutionize weight loss treatments by avoiding the side effects that are often seen with current treatment options. To do so, EraCal is testing compounds that trigger changes in behavior related to appetite while keeping effects in the body to a minimum.
This deal means that Novo will gain exclusive rights to develop and commercialize EraCal’s promising drug, assuming all goes well during the clinical development journey.
With obesity and its many related health concerns affecting millions of people worldwide, it’s understandably a major health concern that needs to be tackled.
As we’ve witnessed the surge in popularity and investment in obesity therapies, with millions pouring into R&D, it’s clear this subsector of Life Sciences is only gaining momentum. Just as we predicted at the start of 2024, the trajectory seems set for even more growth in the coming year.
But amidst all the excitement, let’s pause and ponder: Are all the players in this race motivated by the right reasons? Is access to these life-changing therapies truly equitable? And let’s not forget the elephant in the room: the potential for misuse by those who may not necessarily need them.
As always, we want to hear from you! What are your thoughts on this rapidly evolving field? Join the conversation and share your insights with us.
Speak again soon!
The Meet Team
Recruitment business mentor | Optimising structure and processes to drive business excellence through mentoring.
1moThanks for sharing this article.
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Digital Experience Planning Lead-R&I
1moI am on a GLP-1 medication and have lost almost 80 lbs. I was (and still am) an active triathlete with hypothyroidism and menopause who just kept gaining weight. I had GERD, OSA, high cholesterol in addition to the previously mentioned causes. I am grateful that more medicines will come to market, as obtaining a refill is extremely difficult due to the high number of scripts based on the huge success rate that these medications are having for people like me. At present, my GERD and OSA have gone away, my thyroid is being treated with synthroid and in February my cholesterol levels were just above normal range. I will recheck once i'm at my goal weight, which i'm about 13 lbs away from at this time. I have a feeling they will be in normal range as I was still in the 'overweight' category in February.
Scientific & Business Strategy Executive
2moClearly the race to market is well underway in the obesity field. What's interesting is the shift in strategies away from drugs under development for other conditions, as exemplified by Roche's decision to drop three oncology drugs and five for neurological conditions including two that were destined for the huge Alzheimer's disease market.