Merck Targets Advanced Obesity Drugs with Extra Benefits

Merck is aiming to penetrate the profitable weight loss market by developing innovative anti-obesity drugs that provide additional cardiometabolic advantages beyond mere weight reduction. This strategic focus was revealed by company executives during the 45th Annual Goldman Sachs Healthcare Conference. CEO Robert Davis emphasized that Merck's research and development efforts are primarily centered on small molecule oral drugs rather than injectable solutions.

Davis mentioned that Merck is significantly concentrating on the next-generation opportunities, particularly those addressing the GLP-1-targeting candidates that offer benefits beyond weight loss. He noted that while obesity is the primary focus, the broader goal is to support reimbursement through additional health outcomes.

A key player in Merck's strategy is efinopegdutide, an investigational peptide therapeutic that not only targets the GLP-1 receptor but also activates the glucagon receptor. Although this dual-action mechanism is known for its weight loss and anti-diabetic effects, Merck is currently evaluating efinopegdutide mainly for the treatment of metabolic dysfunction-associated steatohepatitis (MASH). The precise mechanism by which efinopegdutide treats MASH remains unclear, but it may help reduce liver damage, steatosis, and inflammation.

Merck acquired the exclusive rights to efinopegdutide from Hanmi Pharmaceutical in 2020, involving an upfront payment of $10 million and potential milestone payments totaling up to $860 million. In June 2023, the FDA granted efinopegdutide Fast Track designation for MASH, speeding up the development and review process.

Besides MASH, Merck is also investigating efinopegdutide for non-alcoholic fatty liver disease (NAFLD). The company is conducting a mid-stage trial comparing efinopegdutide with Novo Nordisk’s semaglutide. Initial results indicate that efinopegdutide achieved a more substantial reduction in liver fat content while providing comparable weight loss effects to semaglutide.

Merck's focus on next-generation oral GLP-1 therapies with added clinical benefits aims to establish a foothold in the rapidly growing obesity market, which analysts predict could reach a value of $150 billion by the early 2030s. While early leaders like Novo Nordisk and Eli Lilly are expected to dominate approximately 80% of the market, other biopharmaceutical companies are also striving to make significant inroads in the GLP-1 arena.

Boehringer Ingelheim, for example, is progressing with its candidate survodutide, which similarly targets the GLP-1 and glucagon receptors. The drug is currently in five Phase III trials that commenced in 2023. On the other hand, Boston-based startup Syntis Bio has recently emerged to develop alternative obesity treatments that do not involve the GLP-1 pathway. Syntis Bio’s leading program, SYNT-101, aims to block nutrient absorption in the duodenum, mimicking the effects of gastric bypass surgery.

In sum, Merck's strategic investment in next-generation anti-obesity drugs with extended health benefits reflects its commitment to capturing a substantial share of the weight loss market. With multiple players entering the field, the competitive landscape is set to become increasingly dynamic and innovative.