Roche Discontinues Early-Stage Obesity Drug, Remains Confident 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, revealed during the company's second-quarter earnings call, marks a shift in Roche's obesity pipeline strategy but leaves its broader portfolio intact.

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, showed promise in preclinical studies. When combined with CT-388, a dual agonist of GLP-1 and GIP receptors, CT-173 demonstrated the ability to break weight loss plateaus and slow weight rebound in mouse models. However, these results did not translate into a compelling case for further development.

Roche's Obesity Portfolio Remains Strong

Despite the setback with CT-173, Roche maintains a positive outlook on its obesity treatment pipeline. Graham emphasized that the discontinuation "has very little impact on the overall obesity portfolio," describing their remaining assets as "a potentially best-in-disease and highly competitive portfolio of products."

The company's obesity strategy focuses on addressing various market subsegments, including comorbidities and different levels of weight loss. CT-388, the centerpiece of the Carmot acquisition, remains a key asset in this portfolio. Phase Ib data from 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 Q2 Performance Across Key Products

Roche's second-quarter earnings report revealed robust financial performance, 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 products demonstrated significant gains:

• Ocrevus (multiple sclerosis treatment): $2.18 billion, up 10% year-on-year
• Hemlibra (hemophilia A therapy): Nearly $1.6 billion
• Vabysmo (eye injection): Approximately $1.32 billion

These results underscore Roche's strong position in key therapeutic areas, even as it recalibrates its approach to the competitive obesity market.