Photo from Financial Times.
Investors in the venture capital sphere are funding pharmaceutical companies aiming to enhance existing popular weight-loss drugs or mitigate their adverse effects.
Recent advancements in obesity medications have aided numerous individuals in shedding excess weight; however, they may induce nausea and contribute to muscle loss alongside fat reduction. Additionally, certain individuals do not exhibit favorable responses to these innovative treatments. Consequently, various biotechnology companies perceive potential for innovative therapies by addressing these limitations.
Novel medications like Wegovy from Novo Nordisk and Zepbound from Eli Lilly are administered through injection and function by stimulating receptors for incretin hormones to curb appetite. Biotechnology firms are progressing in the development of oral medications to address muscle loss, along with exploring alternative drug mechanisms for individuals unresponsive to current obesity treatments.
Investors noted that the expanding market for obesity treatment is intricate, as companies are investigating numerous potential therapies. They anticipate that the future of treating obesity may entail combining various drugs.
Predicting the future direction of the market is particularly difficult due to the multitude of products in development, according to Patrick Enright, founder and managing director of Longitude Capital, a biomedical investment firm.
Acquirers take note.
Investors noted that biotech firms achieving success will garner interest from acquirers looking to expand their holdings in the obesity sector.
Dr. Srinivas Akkaraju, founder and managing general partner of biotech investor Samsara BioCapital, remarked that with the extensive size of the category already demonstrated, pharmaceutical companies are strongly motivated to uphold their leadership positions within it.
In August, Lilly acquired Versanis Bio, a venture-backed company, in order to secure a medication that could potentially enhance fat loss while maintaining muscle mass when used in conjunction with incretin therapy.
In September, Novo Nordisk acquired Inversago Pharma, a venture-backed firm, which possesses a promising drug targeting a protein implicated in metabolism and appetite control. Additionally, in January, Roche, a life sciences company, purchased Carmot Therapeutics, a venture-funded entity with a pipeline featuring a potential oral medication for obesity and Type 2 diabetes.
Discovering the optimal combination.
Numerous biotechnology companies are progressing with medications that could potentially be paired with incretin therapies to safeguard muscle mass and maximize weight reduction.
According to Kristen Fortney, CEO of BioAge, their drug aims to replicate a protein that the body naturally produces in higher quantities during exercise, thereby enhancing metabolism and muscle functionality. Recently, the company secured $170 million in funding, primarily from Sofinnova Investments, along with contributions from Longitude and additional investors. These funds will facilitate clinical trials of their drug, both independently and in combination with Zepbound and other incretin medications.
Juvena Therapeutics is moving forward with its primary drug targeted at addressing a rare condition known as myotonic dystrophy Type 1, characterized by muscle degeneration. CEO Hanadie Yousef indicated that the company anticipates this drug or a similar compound developed through its discovery platform could potentially be combined with an incretin medication to safeguard muscle integrity. Having secured $41 million in Series A funding in 2022, Juvena also possesses an earlier-stage compound that could independently enhance fat metabolism or complement an incretin therapy.
Startups Rivus Pharmaceuticals and OrsoBio are aiming to maintain muscle mass and enhance weight loss by utilizing a process called mitochondrial uncoupling.
OrsoBio, named after the Italian word for bear, draws inspiration from the fact that bears can shed nearly half of their body weight during hibernation without sacrificing lean muscle mass. This observation has led OrsoBio to focus on mitochondrial uncoupling, a process where the body burns fat without elevating ATP activity, as explained by CEO Dr. Mani Subramanian.
Backed by investors like Samsara and Longitude, OrsoBio is preparing to initiate mid-stage clinical trials involving individuals with obesity and metabolic disorders. Should the drug receive approval, it could be utilized alongside incretin medications, cater to patients unresponsive to or unable to tolerate incretins, or be prescribed to individuals aiming to sustain weight loss post-discontinuation of incretin therapy, according to Subramanian.
New options arise.
Rivus, supported by investors such as RA Capital Management and Longitude, is creating an oral medication with the aim of boosting resting metabolic rate, enabling patients to burn fat while preserving muscle mass. The drug is undergoing clinical trials, which involve obese patients with a heart condition called heart failure with preserved ejection fraction.
According to CEO Dr. Jayson Dallas, the company anticipates that its drug will not need to be paired with incretin medications as it already induces substantial weight loss independently.
Kallyope is progressing with two oral medications currently in mid-stage trials, formulated to trigger the release of hormones that suppress appetite, with the potential to address both obesity and Type 2 diabetes. The company secured a Series D financing round of $236 million in 2022.
Kallyope's Chief Medical Officer, Dr. Brett Lauring, emphasized the necessity for innovative treatments in the evolving obesity medications market, particularly for individuals who do not attain adequate weight loss from existing drugs. Furthermore, he suggested that the market might become more specialized based on the extent of weight loss required by patients. For instance, some individuals may aim to shed a modest amount of weight to prevent obesity onset.
Lauring suggested that there is a preference for initiating treatment at an earlier stage to prevent individuals from developing obesity and its subsequent effects.