Roche Shares Plummet Amid Concerns Over Experimental Weight-Loss Pill

Shares in Roche fell sharply as an experimental weight-loss pill linked to temporary side effects was disclosed. Although the experimental pill had shown promising initial results, concerns over health impacts and high adverse event rates have dampened investor enthusiasm. A more extensive trial phase is set to begin next year.

Shares in Roche saw a significant drop to a two-month low on Thursday, largely due to concerns surrounding an experimental weight-loss pill that showed high rates of temporary side effects in its preliminary human trial stages.

Roche shares were down 3.5% by 0940 GMT, making it the second biggest faller on the pan-European STOXX 600 index. The downturn followed the pharmaceutical company's presentation on Wednesday concerning the trial of the once-daily pill CT-996. Although preliminary results in July had initially boosted Roche's share price, the recent disclosure of side effects has tempered investor excitement.

At a meeting of the European Association for the Study of Diabetes in Madrid, it was revealed that all 25 trial participants experienced mild to moderate side effects, including those on a placebo. Most side effects were gastrointestinal, similar to other medications in the same category. Notably, a higher heart rate by up to 15 beats per minute was observed, raising concerns among JP Morgan analysts about the pill's impact on heart health in an already competitive market.

(With inputs from agencies.)