Shares of Chugai Pharmaceutical (OTCPK:CHGCY) closed ~6% higher on Wednesday after Eli Lilly (NYSE:LLY) announced that its obesity pill orforglipron, jointly developed with the Japanese drugmaker, accomplished the key goals in another Phase 3 trial.
The once-daily oral GLP-1 receptor agonist discovered by Chugai (OTCPK:CHGCF) was licensed by the Indiana-based pharma giant in 2018 for an upfront payment of $50M plus additional milestone payments and royalties on potential sales.
Latest Phase 3 trial win for orforglipron positions the company to proceed with global regulatory filings for the drug this year, Lilly (NYSE:LLY) said in a press release on Tuesday, sending its stock ~6% higher, its biggest intraday rise since April.
According to the company, its ATTAIN-2 trial for obese or overweight adults with type 2 diabetes indicated up to ~11% of average weight loss for orforglipron over 72 weeks at the highest dose level tested.
The readout contrasted with another Phase 3 trial win announced by Eli Lilly (NYSE:LLY) for the experimental therapy early this month, which fell short of Street’s expectations.