Shares of some obesity drug developers fall after Merck signs $2 bln deal to develop oral obesity drug

Kaisa group

18/12/2024 14:28

** Shares of obesity drug developers Structure Therapeutics
 GPCR.O  and Viking Therapeutics  VKTX.O  fall between 7% and 8%
in premarket trading 
    ** GPCR down 7.2% at $29.20 and VKTX down 8.3% at $42.80
    ** Merck  MRK.N  signed a deal worth up to $2 bln with
Hansoh Pharma  3692.HK  to develop and sell the Chinese
biotech's experimental oral obesity drug
    ** "We wonder whether this was the right deal for them,
given the highly competitive nature of the space" - Brokerage
BMO Capital Markets
    ** "This asset is preclinical and well behind Lilly's
orforglipron, Structure's '1290, and Pfizer's danuglipron" -
brokerage
    ** "Consequentially, we expect GPCR shares to be under
pressure today" - BMO Capital Markets 
    ** "From our conversations with clients, Merck represents
one of the most likely acquirers of Viking; as a result, Viking
shares will understandably sell off today" - Brokerage William
Blair
    ** Companies such as GPCR and VKTX, as well as Novo Nordisk
 NOVOb.CO  and Eli Lilly  LLY.N , are developing oral
weight-loss treatments in the hopes of providing patients with a
convenient dosing option
    ** Up to last close, GPCR down 22.8% while VKTX up 150.9%
YTD      

 (Reporting by Sneha S K)
 ((Sneha.SK@thomsonreuters.com;))