Structure Therapeutics (NASDAQ:GPCR) stock is surging today, up 60% after the biotech company reported promising results of its mid-stage trials for its weight loss pills.
Indeed, after 12 weeks, patients on the treatment lost an average of 6.2% of their weight, with one-third of patients losing more than 10% of their weight. This is comparable to Eli Lilly (NYSE:LLY) oforglipron pill at roughly the same point of its study.
However, this came at the cost of vomiting, which almost 66% of Structure’s patients experienced. According to the company, however, tolerability for the treatment improved over time, with no patients experiencing liver toxicity.
Perhaps most notable about Structure’s treatment is that it’s considered a “small molecule” pill. Small-molecule drugs are notably easier to produce than large-molecule equivalents, which presents numerous benefits for patients and manufacturers alike in the supply-constrained weight loss industry.
“Our large-scale manufacturing process is expected to be more than capable of meeting the anticipated global demand of a product,” said Structure Chief Executive Raymond Stevens in a statement.
Investors Eye GPCR Stock as Structures Attempts to Break Into Weight Loss Industry
As it stands, Structure remains a small fish in a large pond. Many analysts assume Structure will eventually partner with a big-name pharmaceutical company to penetrate the biotech market more effectively.
This includes JPMorgan’s Hardik Parikh, who believes there is a “very high probability” Structure will ink a deal with a larger biopharma company within the next few years.
There are surprisingly few major players in the obesity drug industry today. Indeed, just two companies, Novo Nordick (NYSE:NVO) and Eli Lilly, control most of the market. Many predict the industry is primed to explode over the next decade, with companies like Structure primed to enter the fray with their own weight loss drug.
As such, the jump in GPCR stock today can be seen as a bet that Structure will pursue a partnership of some kind. GPCR is at $54 per share at the time of writing, its highest level since December 2023. It is still somewhat below its all-time high of $75 per share, recorded on Nov. 5, 2023.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
