The weight-loss drug market is currently one of the fastest-growing therapeutic areas in the pharmaceutical industry, and Eli Lilly (LLY) has emerged as a major winner in this boom. The company’s Zepbound is one of the best-selling anti-obesity medications. Recently, Eli Lilly also received approval for Foundayo, an oral weight-loss drug that has already achieved notable market performance. In addition, Eli Lilly has several other weight-loss drug candidates in its pipeline.
Although Eli Lilly is expected to continue benefiting from the growth momentum driven by weight-loss drugs for some time, the company is already looking for the next major breakthrough in the industry. Will gene editing be that breakthrough? Let’s take a look at the latest clinical trial results for one of Eli Lilly’s gene-editing drug candidates and what these results mean for leading companies in this field, such as CRISPR Therapeutics (CRSP).
Gene editing refers to a series of techniques that scientists use to alter the genetic composition of an organism. It is a powerful tool because it helps treat many diseases at their root cause, rather than merely alleviating symptoms. Over the past decade, significant progress has been made in the field of gene editing. For example, in 2023, CRISPR Therapeutics received the first approval for a therapy based on CRISPR technology, which is significant because the technology previously earned its inventors the Nobel Prize in Chemistry.
Over the next ten years or so, it is highly likely that more transformative treatments will be developed through gene editing. Eli Lilly aims to secure a share of this field. The pharmaceutical giant recently released clinical trial results for VERVE-102, an experimental gene-editing drug targeting heterozygous familial hypercholesterolemia or early-onset coronary artery disease. Both conditions have strong genetic components and lead to elevated levels of LDL cholesterol, which can in turn cause problems such as heart attacks and strokes.
There are currently methods to control LDL levels, including dietary management, exercise, and certain prescription drugs. However, for patients at high risk of severe cardiovascular disease, a one-time treatment that can permanently lower LDL levels could be revolutionary. VERVE-102 is poised to achieve just that. Results from a recent Phase 1b study released by Eli Lilly showed that a single infusion of VERVE-102 significantly reduced LDL cholesterol, and the effect appeared to be durable.
CRISPR Therapeutics is developing CTX310, a drug designed to lower LDL and triglycerides in specific patient populations. CTX310 is also a one-time gene-editing therapy. Should investors in CRISPR Therapeutics be concerned? On one hand, it is worth noting that although both VERVE-102 and CTX310 aim to reduce cardiovascular risk, they target different patient populations and have distinct mechanisms of action.
Furthermore, as CRISPR Therapeutics has pointed out, there are 40 million patients in the United States alone with elevated LDL or triglyceride levels, making this a vast market capable of accommodating multiple winners. However, Eli Lilly may just be beginning to make its mark in the gene-editing space. If Eli Lilly continues to advance and succeed in this field, the pharmaceutical giant could eventually pose a significant threat to smaller gene-editing companies like CRISPR Therapeutics. Investors need to keep this in mind.
For investors looking to gain exposure to the field of gene editing, Eli Lilly represents a relatively safe choice. In contrast, CRISPR Therapeutics is almost entirely focused on gene editing, and its stock price could soar due to major clinical advancements in the coming years, but it could also decline due to setbacks.
