Roche Discontinues Early-Stage Obesity Drug, Maintains Confidence in Portfolio

Roche, the Swiss pharmaceutical giant, has announced the discontinuation of CT-173, an early-stage obesity treatment, citing a lack of competitiveness. The decision was revealed during the company's second-quarter earnings call, where executives also highlighted strong financial performance and optimism about their broader obesity pipeline.

CT-173 Falls Short of Development Criteria

Teresa Graham, CEO of Roche's Pharmaceuticals Division, explained the rationale behind dropping CT-173, a PYY mimetic obtained through the $2.7 billion acquisition of Carmot Therapeutics in December 2023. "When we bounced it up against our bar assessment, the criteria for developability and competitiveness just weren't there," Graham stated during the presentation.

The molecule, which mimics the gut hormone PYY to regulate appetite and insulin secretion, had shown promise in preclinical studies. Data presented in September 2024 demonstrated that CT-173, when combined with CT-388 (a dual agonist of GLP-1 and GIP receptors), helped break weight loss plateaus in mouse models and resulted in slower weight rebound after treatment cessation.

Despite these early results, Roche determined that CT-173 did not meet the company's stringent standards for further development. Graham emphasized that the discontinuation "has very little impact on the overall obesity portfolio," describing CT-173 as "a very early-stage program."

Roche Remains Bullish on Obesity Pipeline

While CT-173 has been shelved, Roche executives expressed continued confidence in their obesity treatment portfolio. Graham asserted that the company has "a potentially best-in-disease and highly competitive portfolio of products" designed to address various subsegments of the obesity market.

The pharmaceutical firm is particularly optimistic about CT-388, which was the centerpiece of the Carmot acquisition. Phase Ib data released in May 2024 showed that CT-388, administered once weekly via subcutaneous injection, could lower body weight by 18.8% compared to placebo. Roche expects to receive Phase III-enabling readouts for CT-388 by the end of the year.

Strong Financial Performance Across Key Products

Roche's second-quarter earnings report revealed robust financial results, with total earnings of 15.504 billion Swiss Francs (approximately $19.6 billion), representing an 8% year-on-year growth. The company's top-selling product, Ocrevus for multiple sclerosis, generated sales of around $2.18 billion, a 10% increase from the previous year. Other standout performers included the hemophilia A therapy Hemlibra, with sales of nearly $1.6 billion, and the eye injection Vabysmo, which brought in roughly $1.32 billion.