Roche Holding Ltd (RHHBY.US) plans to advance its experimental weight loss drug CT-388 to late-stage clinical trials next year, aiming to challenge market leaders Eli Lilly (LLY.US) and Novo-Nordisk A/S (NVO.US) in the obesity treatment sector. The drug experienced significant stock price volatility last year following disclosure of side effects including nausea and vomiting in early studies, though Roche subsequently emphasized that the adverse event rates were comparable to competing products with no significant cost differences.

The obesity market is currently dominated by Eli Lilly and Novo-Nordisk A/S, with annual sales projected to exceed $100 billion by 2030. To accelerate its market positioning, Roche entered into a $5.3 billion collaboration agreement with New Zealand-based Zealand Pharma this year to jointly develop Zealand's pipeline weight loss medications, while also advancing its own internal research pipeline that includes another investigational obesity drug.

CT-388 operates through a similar mechanism to Eli Lilly's flagship product Zepbound, activating GLP-1 and GIP receptors to promote satiety and reduce food intake. Roche also disclosed that CT-388, when used in combination with Zealand Pharma's pipeline drugs, could potentially create a "best-in-class" treatment approach with superior tolerability.

As of last Friday's close, Roche Holding Ltd shares gained 1.46%, bringing year-to-date gains to approximately 5.4%.