Roche shares gain on obesity drug results from early-stage trial

HEALTH-OBESITY/ROCHE HLDG (UPDATE 1):UPDATE 1-Roche shares gain on obesity drug results from early-stage trial

By Ludwig Burger

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May 16 - Roche shares gained as much as 4.7% early on Thursday after an early-stage trial showed that the obesity drug candidate by newly acquired Carmot Therapeutics led to significant weight loss.

The Swiss drugmaker said the study in the first of three trial stages required for regulatory approval showed the compound known as CT-388 resulted in weight loss of 18.8%, when adjusted for a placebo effect, after 24 weeks in healthy adults with obesity.

The shares were up 4.1% at 0732 GMT, on track for their best one-day performance since September 2022.

Roche in December agreed to take over unlisted obesity drug developer Carmot for $2.7 billion upfront, joining a list of contestants seeking to challenge the dominant makers of weight-loss drugs Novo Nordisk and Eli Lilly.

Once-a-week injection CT-388 is Carmot's most promising drug candidate, mimicking the effect to two gut hormones - GLP-1 and GIP - like Lilly's Mounjaro, also known as Zepbound.

Novo Nordisk shares surged more than 8% to record highs in March when the company said a Phase I trial of a pill version of experimental weight loss drug amycretin showed a 13.1% weight loss after just 12 weeks, a bigger reduction early on than from its approved Wegovy shot.

One trader said the gain in Roche's stock was also supported by some investors seeking to cover previous short positions, or bets on a falling share price.

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