The Structure Therapeutics GPCR stock has been identified as a potential winner in the obesity drug market. JPMorgan has given the stock a significant upside potential.
What Happened: JPMorgan has initiated coverage of Structure Therapeutics, a biotech company, with an “Overweight” rating and a price target of $65, indicating an 80% potential upside from the current levels. The bank has identified Structure Therapeutics as a key player in the rapidly growing market for GLP-1 weight loss drugs, reported Business Insider.
Structure Therapeutics is developing a drug candidate called “1290,” which is an oral pill designed for the GLP-1 weight loss market. This drug is based on a small molecule formulation that could potentially hit the market one to two years ahead of competitors.
The drug is expected to offer significant weight loss results for patients with no major safety concerns, setting it apart from other oral weight-loss drug candidates.
“We think GPCR’s market share in the oral market can approach 5% over time in an unprecedentedly large market. All-in, we think 1290/Structure could be an attractive partnership opportunity for larger biopharma companies looking to participate in the T2D/Obesity market,” JPMorgan said.
JPMorgan believes that Structure Therapeutics’ oral GLP-1 weight loss drug candidate could generate peak sales of over $1 billion by 2035. The company went public in February 2023.
Why It Matters: The obesity drug market has been witnessing significant developments. Recently, Roche Holding RHHBY released promising results from the Phase 1b trial of its dual GLP-1/GIP receptor agonist CT-388, indicating a significant potential in the obesity treatment market.
Additionally, Eli Lilly And Company LLY secured approval for its diabetes drug tirzepatide in China, setting the stage for heightened competition with Novo Nordisk A/S NVO in the crucial Asian market.
Earlier, Biohaven BHVN highlighted a different approach to the obesity drug market with its experimental drug, taldefgrobep alfa (BHVN-2000), which could prevent muscle loss while aiding weight loss.
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