Structure Therapeutics stock plunges on new GLP-1 drug data

Structure Therapeutics Inc. American depositary receipts (GPCR) dropped 40% premarket on Monday after the company released new data from a study of GSBR-1290, its investigational diabetes and obesity treatment. In patients with type 2 diabetes, the drug produced a statistically significant reduction in blood sugar after 12 weeks, Structure said. Patients with obesity achieved statistically significant placebo-adjusted weight loss of about 4.7% after eight weeks on the treatment, the company said. GSBR-1290 is an oral GLP-1 receptor agonist, a group of drugs that also includes injectables like Novo Nordisk's (NVO) Wegovy and Ozempic. Other drugmakers, including Eli Lilly & Co. (LLY) and Pfizer Inc. (PFE), are also working on pill versions of the popular drugs. Full 12-week obesity data on GSBR-1290 are expected in the second quarter of next year, Structure said. To have a "best in class" drug candidate, GSBR-1290 would need to produce more than 7% placebo-adjusted weight loss after 12 weeks, Jefferies analysts said in a late November research note. Structure shares have gained 65% over the past three months, while the S&P 500 has gained 6%.

-Eleanor Laise

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12-18-23 0804ET

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