The lucrative marketplace for obesity drugs is dominated by two players immediately, but Structure Therapeutics has the potential to enter the category with an oral GLP-1 medication, in line with Piper Sandler. Analyst Yasmeen Rahimi initiated coverage of the clinical stage drugmaker with an chubby rating Thursday and set a $58 price goal, which suggests nearly 64% upside from where Structure’s shares closed Wednesday. “With 8 direct and 15 indirect catalysts within the next ~12-18 months, we see several near-term opportunities to further drive GPCR shares,” Rahimi wrote in a research note. The startup’s upsized initial public offering in February got here after an extended lull in biotechs going public. Structure’s ticker symbol is a nod to the corporate’s research, which focuses on G protein-coupled receptors, or GPCRs, a growing area of drug development. GSBR-1290 is Structure’s GLP-1R agonist that’s being studied as treatment for type 2 diabetes and obesity. If successful, the drug could in the future compete against Novo Nordisk’s blockbusters Ozempic and Wegovy and Eli Lilly’s Mounjaro. GPCR YTD mountain Structure Therapeutics shares year-to-date. GLP-1 medications mimic hormones within the gut to assist regulate insulin levels and slow the speed at which the stomach empties. In addition they reduce food cravings and have proven highly successful in aiding weight reduction, with few unwanted effects. Still, essentially the most effective drugs currently on the market on this category require a weekly injection, which is one reason Structure’s oral medication could be a pretty option for patients, in line with Rahimi. ” injectable GLP-1 sales in 2022, Wegovy did $885M and Mounjaro did $483M, yet obesity is basically untapped at only ~2% penetration. Thus, we consider an oral agent to be used in primary care settings is required to unlock the key opportunity,” she said, citing statistics that greater than 40% of the U.S. adult population is obese , which is potentially greater than 130 million patients. Structure is anticipated to offer more detail about how early-stage clinical trials are going for GSBR-1290 within the fourth quarter. Investors will be trying to see how patients tolerate the drug and the quantity of weight they can lose while taking the medication. Individually, the analyst said Structure’s other early stage drug candidate, LTSE-2578, provides further upside as investors have largely missed the chance it provides. It’s being investigated as a treatment for idiopathic pulmonary fibrosis , a chronic lung disease. “LTSE-2578 is stronger in vivo and in vitro activity, which should translate to clinical profit,” said Rahimi. ” [W]e find it clear that LTSE2578 has essentially the most optimal and potentially best-in-class profile that delivers strong activity across several parameters based on preclinical IPF models.” Structure, which modified its name from ShouTi Inc. in August 2022, trades on the Nasdaq as an American depository receipt. The corporate is headquartered in San Francisco but has research and development operations in Shanghai.