Novo Nordisk and Eli Lilly fell as Roche made weight loss breakthrough

Novo Nordisk (NYSE:NVO) and Eli Lilly (NYSE:LLY) stock traded lower through Wednesday, under competitive pressure as rival Swiss drug-maker Roche (ROG:SWX) announced early-stage trial results for its experimental oral weight-loss drug, CT-996.

Participants taking the drug lost an average of 7.3% of their body weight over four weeks, Roch announced.

Whilst early stage, it presents a potential additional disruptor in the weight loss market and notably through oral delivery rather than injectable like Novo Nordisk’s Ozempic and Wegovy, or Eli Lilly’s Mounjaro.

Roche highlighted that CT-996 was well-tolerated, with side effects limited to mild or moderate gastrointestinal issues, and, the drug maker also noted that the candidate could also have potential as a treatment for managing type 2 diabetes.

It will now continue its trials, with further studies involving participants with both obesity and type 2 diabetes slated for later this year.

Novo Nordisk shares were down 4.25% at $134.90 and Eli Lilly was down 2.6% to $917.09.

In Europe, meanwhile, Roche shares advanced 6% to trade at just under 275 Swiss francs.