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Structure Therapeutics (GPCR) Stock Up 9% This Week: Here's Why

Structure Therapeutics’ GPCR shares were up 9.1 % this week, owing to a positive announcement last week. On Sep 29, the company announced positive data from the early-stage study of its weight loss candidate, GSBR-1290.

GSBR-1290 is a highly selective oral GLP-1 receptor agonist, being evaluated in a phase Ib multiple ascending dose study (across three dose cohorts with target doses of 30mg, 60mg or 90mg) in healthy overweight or obese individuals.

GSBR-1290 was administered as a daily oral pill. Initial findings from the study showed that patients receiving 90mg dose of GSBR-1290 experienced a remarkable 5.4% reduction in their body weight, while the placebo group experienced only a 0.5% decrease in body weight throughout the 28-day treatment period.

The candidate was well tolerated and no adverse events related to discontinuation in the phase I study was observed.

The company plans to report top-line data from the type II diabetes cohort of the phase IIa study by 2023-end and from the obesity cohort in the first half of 2024. Furthermore, a phase IIb study of GSBR-1290 in type II diabetes and obesity patients is expected to be initiated by 2024.

Shares of Structure Therapeutics have risen 108.5% year to date against the industry’s 17.8% decline.

Zacks Investment Research
Zacks Investment Research

Image Source: Zacks Investment Research

GLP-1 receptor agonists stimulate insulin secretion and inhibit glucagon release from the pancreas, leading to improved blood sugar control. They also reduce appetite and slow gastric emptying, aiding in weight management.

Several other companies like the bigwig Eli Lilly LLY and Novo Nordisk NVO are developing or have developed injectable treatments for weight management.

LLY’s Mounjaro (tirzepatide) is a dual GIP and GLP-1 receptor agonist, approved for managing blood sugar levels in adults with type II diabetes. The company is also seeking FDA’s approval for expansion of the drug indication to include obesity and weight management.

Mounjaro has shown superior weight-loss reduction in clinical studies for the obesity indication. Regulatory applications have already been filed for the drug for obesity indication in the United States and European Union.

In the United States, the FDA has assigned priority review to the regulatory filing with a decision expected by 2023-end. LLY generated sales of $1.55 billion in the first half of 2023 from Mounjaro.

Novo Nordisk’s popular GLP-1 receptor agonist, Wegovy (semaglutide – 2.5 mg), is an anti-obesity injection. Wegovy is seeing strong prescription trends and generating impressive revenues for Novo Nordisk.

In clinical studies, patients taking Wegovy have experienced an average 15% weight loss over a 68-week period. Wegovy sales were up 363% at constant exchange rate in the first half of 2023.

Structure Therapeutics Inc. Sponsored ADR Price and Consensus

Structure Therapeutics Inc. Sponsored ADR Price and Consensus
Structure Therapeutics Inc. Sponsored ADR Price and Consensus

Structure Therapeutics Inc. Sponsored ADR price-consensus-chart | Structure Therapeutics Inc. Sponsored ADR Quote

Zacks Rank & Stock to Consider

Structure Therapeutics currently carries a Zacks Rank #3 (Hold).

A better-ranked stock in the same industry is Anika Therapeutics ANIK, carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

In the past 90 days, the Zacks Consensus Estimate forAnika Therapeutics has narrowed from a loss of $1.41 per share to a loss of $1.24 for 2023. The bottom-line estimate has widened from a loss of 79 cents to a loss of 82 cents for 2024 during the same time frame. Shares of the company have lost 36.3% year to date.

ANIK’s earnings beat estimates in one of the trailing four quarters and missed the mark in the remaining three, delivering an average negative surprise of 32.12%.

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Novo Nordisk A/S (NVO) : Free Stock Analysis Report

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Structure Therapeutics Inc. Sponsored ADR (GPCR) : Free Stock Analysis Report

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