Eli Lilly & Co. (NYSE: LLY) has made the decision to end a mid-stage trial of its experimental drug, bimagrumab, intended for obesity patients with type 2 diabetes, just weeks after it officially began. The company cited strategic business reasons for this abrupt halt, although a related study focused on non-diabetic obesity patients is still in progress.
On June 10, less than a month after its initiation, the trial was officially terminated according to updates on a U.S. clinical trial registry released Wednesday. This Phase 2b study was a double-blind, randomized, and placebo-controlled trial that aimed to evaluate bimagrumab’s efficacy and safety in combination with tirzepatide.
The trial was aimed at adult participants struggling with obesity and diagnosed with type 2 diabetes. Current market contenders, including Roche Holdings AG (OTC: RHHBY), Regeneron Pharmaceuticals Inc. (NASDAQ: REGN), and Veru Inc. (NASDAQ: VERU), pay close attention to bimagrumab as it is designed to preserve muscle while encouraging fat loss—a common challenge within obesity treatments.
According to the plans, the discontinued study was set to enroll 180 overweight or obese patients over a period of 13 months. While focused primarily on weight reduction, an essential aspect of the study measured how much fat was lost in comparison to muscle mass. Initially, Lilly had anticipated announcing the trial results by October 2026.
### Background on Bimagrumab
Eli Lilly’s financial commitment to bimagrumab has been substantial; the company invested about $2 billion in 2023 for the acquisition of Versanis Bio Inc., a firm also engaged in obesity drug development. Earlier this June, Lilly shared promising data indicating that bimagrumab helped patients preserve muscle mass while undergoing weight loss treatment with Wegovy, a leading obesity medication developed by Novo Nordisk.
Bimagrumab operates by blocking a specific receptor that typically regulates muscle growth. It was originally developed by Novartis AG (NYSE: NVS) nearly a decade ago and had been subjected to testing in a small diabetes study at that time. Despite showing initial promise, that study raised significant safety concerns when one participant experienced pancreatitis, necessitating hospitalization. Subsequent research has suggested that diabetes patients using similar medications may face heightened risks of pancreatic inflammation.
### Ongoing Research
Despite the setback with the latest trial, Eli Lilly is not putting all its eggs in one basket. The company continues to recruit patients for a separate ongoing Phase 2 study of bimagrumab paired with tirzepatide, either alone or in combination, in adult participants classified as obese or overweight but without type 2 diabetes. This new study is projected to last approximately 70 weeks and plans to enroll 240 participants.
### Stock Market Reaction
In light of this recent trial closure, Eli Lilly’s stock reflected investor concerns, registering a decline of 2.56% and trading at $736.29 in the latest session on Thursday.
As the competition grows in the obesity treatment landscape, with Lilly and Novo Nordisk at the forefront, the company’s strategic responses to these challenges will be pivotal moving forward. The landscape remains dynamic and closely monitored by both investors and competitors alike as they strategize their positions in this critical health sector.
