Structure Therapeutics Stock (GPCR) Spikes 102% as Obesity Trial Beats Eli Lilly, Novo Nordisk

Biotech Structure Therapeutics' (GPCR) shares rallied 102.49% on Monday after mid-stage data for its obesity pill topped competing offerings from Eli Lilly (LLY) and Novo Nordisk (NVO).TipRanks Cyber Monday Sale Claim 60% off TipRanks Premium for data-backed insights and research tools you need to invest with confidence. Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off On Monday, the California-based company announced results from its studies for aleniglipron, its once-daily obesity pill. What Did the Study Find? During its Phase 2b ACCESS study conducted over 36 weeks, Structure found that a 120 mg dose of the pill made participants lose 15.3% more weight compared to people who took a dummy pill. The administration of the 240 mg dose of the same pill in the biotech's exploratory ACCESS II study indicated an even greater impact on weight loss. Structure Therapeutics' Pill Beat Rivals Reacting to the results, several Wall Street analysts praised the pill's performance compared to rival offerings and put forward large price target boosts. Clear Street analyst Kaveri Pohlman raised his GPCR price target by over 62% to $99, up from $61 per share. According to Pohlman, aleniglipron's performance in the Phase 2b study surpassed the 11% benchmark set by Eli Lilly in its Phase 3 Attain-1 trial for rival pill orforglipron. It also beat the performance recorded by Novo Nordisk in its Phase 3 STEP 1 trial for semaglutide and in the Danish pharma giant's study of Rybelsus, an oral semaglutide. Semaglutide is the active ingredient in the popular obesity drug Wegovy, the type 2 diabetes medication Ozempic, and Rybelsus — which are all produced by Novo Nordisk. The ingredient works by lowering the body's blood sugar and supports weight loss by copying a natural gut hormone, GLP-1, that controls appetite and insulin. Analyst Praises Pill's Safety Profile Like semaglutide, aleniglipron mimics GLP-1. However, unlike Eli Lilly and Novo Nordisk's versions that come in the form of injections, Structure's aleniglipron is being designed in a small-molecule, oral form to be taken once a day as a pill. Furthermore, cheering aleniglipron's performance, Pohlman noted that the pill's side effects look competitive compared to Eli Lilly and Novo Nordisk. In the study, about 10.4% of patients had to discontinue taking the pill due to side effects — this compares favorably to the 10.3% discontinuation recorded at week 72 in Eli Lilly's Attain-1 trial, the Clear Street analyst noted. Obesity Pill Can Generate $6.3B by 2040, Morgan Stanley Says Chipping in, Stifel analyst Annabel Samimy noted that Structure "now has a viable and versatile small-molecule offering for independent development or future partnership." Similarly, Morgan Stanley analyst Terence Flynn sees the pill helping Structure enter the market in 2028 and to generate about $6.3 billion in sales — without accounting for inflation and other risks — by 2040. Meanwhile, Wall Street has also cheered the initial results from U.S. biotech firm Wave Life Sciences' (WVE) first-in-human trial for its experimental obesity drug WVE-007. Momentum for both pills comes as the competition in the obesity market, valued at about $70 billion, has been heating up. American pharma giant Pfizer (PFE) is looking to penetrate the market with its recent $10 billion acquisition of startup Metsera (MTSR). Is GPCR a Good Investment? Across Wall Street, analysts hold a Strong Buy consensus rating on Structure Therapeutics' shares based on 11 Buys issued over the past three months. At $84.30, the average GPCR price target reflects more than 20% upside.