Questions about whether Eli Lilly and Novo Nordisk can maintain their duopoly in weight loss drugs are fair game, but come 'too soon,' one analyst said.
The lucrative market for weight loss drugs won't stay a duopoly forever. With billions at stake, that's pretty much been a guarantee facing the current market leaders, Eli Lilly and Novo Nordisk , from the start. But the reality of the coming competition has grown more tangible after recent announcements from rival drugmakers Roche and Viking Therapeutics . Both companies have made progress with experimental treatments that promise to help patients shed more pounds faster.
Global Research. Kumar said the concerns about competition are "fair," but "too soon." "It is true that many players are developing assets targeting obesity," he said. "However, the time required to build out clinical data, access and manufacturing scale remains the key barrier to entry." Meanwhile, analysts say Lilly and Novo may continue to surprise to the upside as they work to ramp up manufacturing capacity.
mountain Viking Therapeutics shares year to date. Viking Therapeutics surged 30% last week after revealing that VK-2735 — an injectable drug that combines two gut hormones, GLP-1 and GIP — would speed directly into a phase 3 program after it met with the Food and Drug Administration. The company is also exploring whether the weight loss treatment could be given only once a month.
analyst Justin Zelin said Viking appears "increasingly confident" that monthly dosing is a possibility, an achievement he believes would be "icing on the cake." Like Lilly and Novo, Viking is also working on an oral drug, which will move to a phase 2 trial in the fourth quarter. Zelin expects more detail on the trials at the ObesityWeek conference in San Antonio in early November.
's Kumar has identified at least 125 drug pipeline candidates to treat obesity at various stages of development. The market has heard recent updates from players including Pfizer and Amgen as well as Structure Therapeutics and Altimmune . Plus, Lilly and Novo aren't sitting still. Kumar expects a readout on Novo's next-generation drug, CagriSema , in the fourth quarter will "de-risk Novo's longer-term growth potential.
Weight Loss Diets Obesity Health Care Industry Altimmune Inc Structure Therapeutics Inc Amgen Inc Pfizer Inc Novo Nordisk A/S Eli Lilly And Co Viking Therapeutics Inc Roche Holding AG Roche Holding AG Investment Strategy Carmot Therapeutics Inc Novo Integrated Sciences Inc Business News
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