VKTX - Roche Is Joining The Obesity Party But Questions Remain
2024-05-18 11:18:53 ET
Summary
- Roche's obesity candidate CT-388 showed positive results in a phase 1b trial, with an 18.8% placebo-adjusted weight loss at week 24.
- The full data presentation is needed to assess safety and tolerability and how CT-388 stacks up against key competitors.
- Roche's emerging cardiometabolic pipeline could become one of the fastest growing segments in the next 10+ years.
- With the stock trading at low earnings and revenue multiples and with the COVID-19 windfall comps finally in the rearview mirror, the return to top and bottom-line growth could bring the EV/revenue multiple back to previous highs.
Roche Holding ( RHHBY ) announced positive topline results from the phase 1b trial of its obesity candidate CT-388 this week and its share price received a 4% boost on the day of the announcement. The results look strong with 18.8% placebo-adjusted weight loss at week 24, but they also leave a lot to be desired in terms of very valuable information, especially on the side of safety and tolerability, and we have to wait for the full data presentation at a medical conference for a better picture....
Roche Is Joining The Obesity Party But Questions Remain