Structure Therapeutics reports promising results for weight-loss pill

Structure Therapeutics Inc (NASDAQ: GPCR) says its experimental weight-loss pill showed promising results in a mid-stage trial. Its shares are still down more than 40% at writing.

GSBR-1290 is statistically better than placebo

GSBR-1290 helped participants lose 4.74% of their body weight in eight weeks, as per a press release on Monday.

The results were statistically better than a placebo. According to Raymond Stevens – the Chief Executive of Structure Therapeutics:

The GLP-1 receptor antagonist also resulted in a clinically meaningful decrease in blood sugar level after twelve weeks, as per the preliminary data reported today. Structure Therapeutics stock is now down 55% versus its year-to-date high.

Why is Structure Therapeutics stock down today?

Shares of Structure Therapeutics are taking a beating this morning primarily because the GSBR-1290 failed to be as effective in reducing weight as a competing, under-development pill by Eli Lilly.  

The investigational drug has to deliver over 7.0% loss in body weight after twelve weeks to be categorized as the “best in class”, analysts at Jefferies told clients in a research note late last month.

The mid-stage data that the pharmaceutical firm announced today did confirm its weight-loss pill to have a tolerability advantage, though. $GPCR will report the post twelve weeks data for GSBR-1290 in Q2 of the coming year.

In November, the Nasdaq-listed company reported a near $24 million net loss for the three-month period through September 30^th. Heading into Monday, Wall Street had a consensus “buy” rating on Structure Therapeutics stock.