Veru’s Enobosarm Shows Promise in Preserving Muscle During Weight Loss

Veru's experimental drug, enobosarm, recently demonstrated promising results in a mid-stage study aimed at preserving muscle in older obese patients. This study combined enobosarm with Novo Nordisk's weight-loss treatment, Wegovy, and involved 168 participants aged 60 and above. The primary focus was on reducing the risk of falls and fractures by maintaining lean muscle mass during weight loss.

The trial achieved its main objective, as participants receiving both enobosarm and Wegovy lost significantly less lean muscle compared to those on a placebo and Wegovy. Specifically, the combination resulted in a 71% reduction in muscle loss over a 16-week period. Additionally, patients on the drug duo experienced greater fat mass reduction than those on the placebo and Wegovy.

While preserving muscle was a key outcome, the study also noted improvements in stair climb power. Approximately 19% of patients on the enobosarm-Wegovy regimen lost at least 10% of their climbing power, compared to 42.6% of those on Wegovy alone. This data underscores the potential of enobosarm to enhance the quality of weight loss in older adults.

Despite these successes, Veru's shares dropped by 44% to 67 cents in morning trading, partly due to the fact that patients did not lose more overall weight than those on Wegovy alone. However, analysts like Srikripa Devarakonda from Truist Securities highlight the importance of muscle preservation in the treatment landscape.

"Veru's data attempts to address the importance of muscle preservation," said Srikripa Devarakonda.

The ongoing extension study will further explore enobosarm's ability to prevent fat and weight regain after discontinuing Wegovy. Results, including safety details, are expected to be disclosed in April. Veru is also conducting a larger study focusing on stair climb power as a primary endpoint.

Veru joins other pharmaceutical companies like Eli Lilly, Regeneron, and Scholar Rock in their efforts to improve weight loss quality by preserving muscle mass while reducing fat.

"We believe weight loss of the combined drugs and safety are (the) key metrics investors are looking for," stated Srikripa Devarakonda.