Novo Nordisk A/S, a pharmaceutical giant, has stirred the obesity drug market with the release of headline results from a Phase 2a clinical trial for its experimental drug, monlunabant. This small-molecule oral cannabinoid receptor 1 (CB1) inverse agonist showed impressive weight loss results after 16 weeks of treatment. Participants receiving a daily 10mg dose of monlunabant lost an average of 7.1kg, compared to a mere 0.7kg loss in the placebo group. However, investors appear hesitant due to the limited additional weight loss observed at higher doses.
This news has sent ripples through the industry, particularly impacting the stock prices of companies developing similar drugs. Corbus Pharmaceuticals Holdings Inc. and Skye Bioscience Inc., both developing drugs that target peripheral CB1 inhibition, experienced significant stock plunges in reaction to the data. Corbus Pharmaceuticals’ CRB-913, another CB1 inverse agonist, is currently in the preclinical phase with human trials expected to begin in the first quarter of 2025. Skye Bioscience is conducting a Phase 2 trial for nimacimab, an antibody that peripherally inhibits CB1, in combination with Novo Nordisk’s Wegovy (semaglutide). Interim and topline data from this trial is anticipated in 2025.
Analysts remain cautious, with Wedbush maintaining an Outperform rating for Corbus Pharmaceuticals while lowering the price target from $85 to $51. B. Riley Securities also maintains a Buy rating for Corbus but has lowered the price target from $85 to $40. Jefferies analysts highlight the uncertainties surrounding Corbus’ asset and the difficulty in drawing firm conclusions given Novo Nordisk’s advancement in the field. They emphasize the need for further clarity, which could be provided by the long-term open-label extension data expected in late October.
The impact on the market is evident in the stock price fluctuations. SKYE stock has plummeted by 41% to $3.24, while CRBP stock has experienced a steep decline of 59.4% to $21.00. This news underscores the competitive landscape within the obesity drug market and the significant influence of clinical trial results on investment decisions. It remains to be seen how monlunabant will perform in later-stage trials and whether it will ultimately gain market approval. However, its initial success has certainly injected a wave of excitement and concern within the pharmaceutical world.
