Kailera Therapeutics saw its stock drop 10% after trial data revealed that roughly 70% of patients taking its oral obesity drug HRS-7535 experienced nausea — far higher than the placebo group. The drug did meet its primary weight-loss goal, shedding up to 11.1% body weight by week 50. Analysts say the side effect profile will need significant improvement to be competitive.
Kailera Therapeutics had a rough Tuesday on Wall Street after late-stage trial data out of China showed its oral weight-loss drug HRS-7535 came with a hefty side effect burden. While the drug successfully met its primary endpoint — helping patients lose up to 11.1% of their body weight by week 50 — the high rates of nausea and vomiting rattled investors and sent shares tumbling 10%.
The trials were conducted by Kailera's China-based partner, Jiangsu Hengrui Pharmaceutical, across two separate studies: one in obesity and one in diabetes. In the diabetes trial, HRS-7535 was found to be non-inferior to AstraZeneca's dapagliflozin in reducing HbA1c levels, a key marker of long-term blood sugar control.
By the Numbers:
65% reported vomiting vs. 4.5% in the placebo group
Why it matters: The obesity drug market is fiercely competitive, and tolerability is a key differentiator. Analysts believe the nausea and vomiting rates will need to drop to the mid-30s and mid-20s (percentage-wise) for HRS-7535 to carve out a meaningful market position. A global mid-stage trial is underway, with data expected next year.
