The pharmaceutical giant Roche is shifting toward obesity medication.
A number of key strategic factors led to the move. Investors will leap on the issue of the cost of research and development. Billions are flowing through the giant industry and Roche stands near the pinnacle of spending.
Despite the spigot being on fully, results are critical. Recent ventures have not been so strong for Roche, especially in Alzheimer treatment. Dementia and similar illnesses have proven challenging for all pharmaceutical companies in the search for breakthroughs.
Pharmaceutical giants favor specialization in areas where they can make a difference socially and medically. In 2023, Roche paid almost $3 billion for Carmot Therapeutics in order to build up its obesity treating capabilities.
Roche holds high hopes for CT-996, a daily investigational obesity pill developed by Carmot Therapeutics that looks promising in development.
But CT-996 has been found to produce an elevated rate of temporary side effects in some instances. The results indicate that a more rapid increase in dosage creates more side effects. At the same time, the product does reduce weight. After the side effects were revealed, Roche stocks dipped, shortly before the publication of this article.
Obesity medication now has many hopeful contenders. The competitors are looking for something new and attractive to deal with this expanding medical problem.
Across the European Union, more than 16 percent of adults fall into the obese category.
More than 40% of American adults are obese, according to the Centers for Disease Control and Prevention. In the U.S., there is also a focus on “severe obesity.” Obviously, no miracle cure has emerged. Mere diet solutions have not slowed the growth of these troubling statistics. So, the obesity field, while crowded with major contenders such as Novo Nordisk NVO and Eli Lilly LLY , can do with a well-funded, energetic entrant. Ozempic (made by Novo Nordisk) is now a household name. The treatment took in nearly $14 billion for Novo in 2023. Pfizer PFE and Amgen AMGN are also major players in this area.
The social benefit is obvious. Obesity pharmaceuticals could lengthen a patient’s life span and make them more productive throughout their life. Successful medications may also reduce susceptibility to other illnesses.
Other giants are on the move as well. Novo Holdings spent $16.5 billion to purchase Catalent, making one of the largest recent acquisitions. Novo takes the lead for its GLP-1 receptor agonist products, including Ozempic and Wegovy.
Roche admirers will stress the company’s successes in both injectable and oral treatments. Its massive R&D budget also provides a likelihood of success. If a product works and it is relatively easy to administer, it should be successful.
Of course, a true breakthrough is no guarantee. But Roche may well leap into the fray and develop serviceable, attractive products to deal with this massive and costly medical problem.