Earlier on Friday, Novo Nordisk A/S (NYSE:NVO) announced headline results from a phase 2a clinical trial with monlunabant, a small-molecule oral cannabinoid receptor 1 (CB1) inverse agonist.
After 16 weeks of treatment, people treated with a once-daily 10 mg dose of monlunabant achieved a weight loss of 7.1 kg compared to a reduction of 0.7 kg with a placebo.
Probably, the investors are reacting to the limited additional weight loss seen at higher doses.
In March, Novo Nordisk shared monlunabant update during its Capital Markets Day 2024.
In Phase 1, monlunabant produced a statistically significant mean weight loss of 3.5 kg (3.3%) compared to 0.6 kg (0.5%) with placebo at day 28.
Corbus Pharmaceuticals Holdings Inc. (NASDAQ:CRBP) and Skye Bioscience Inc. (NASDAQ:SKYE) stocks plunged in reaction to the data.
All three companies are developing weight loss drugs that employ a mechanism of action, peripheral CB1 inhibition.
Corbus Pharmaceuticals’ investigational CRB-913, also a CB1 inverse agonist, is in the preclinical phase. Human trials are expected to start in the first quarter of 2025.
Analyst reactions:
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Wedbush maintains Corbus Pharmaceuticals with an Outperform rating and lowered the price target from $85 to $51.
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B. Riley Securities maintains Corbus with a Buy and lowered the price target from $85 to $40.
Skye is conducting a Phase 2 trial in obesity for nimacimab, a negative allosteric modulating antibody that peripherally inhibits CB1.
This study is also assessing the combination of nimacimab and Novo Nordisk’s Wegovy (semaglutide). Skye expects interim and topline data from its Phase 2 study in 2025.
Jefferies analyst notes that while expectations for Corbus’ asset have been tempered, key uncertainties persist, making it difficult to draw firm conclusions. This is particularly true as Novo Nordisk advances its obesity candidate. Additional insights from long-term open-label extension data, expected in late October, may provide more clarity.
Price Action: SKYE stock is down 41% at $3.24, and CRBP stock is down 59.4% at $21.00 at last check Friday.
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Latest Ratings for CRBP
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Date |
Firm |
Action |
From |
To |
|---|---|---|---|---|
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Oct 2020 |
HC Wainwright & Co. |
Maintains |
Buy |
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Sep 2020 |
HC Wainwright & Co. |
Maintains |
Buy |
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|
Sep 2020 |
Roth Capital |
Downgrades |
Buy |
Neutral |
View More Analyst Ratings for CRBP
View the Latest Analyst Ratings
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This article Novo Nordisk’s Monlunabant Data Drags Stocks Of Smaller Players originally appeared on Benzinga.com
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