(Reuters) – Vivani Medical shares surged more than five-fold in early trading on Wednesday after the drug developer said its experimental under-the-skin drug implant helped reduce weight in obese mice in a pre-clinical trial.
The implant caused a weight loss of about 20% compared to a sham treatment in high-fat diet-induced obese mice after a 28-day treatment, the company said.
Weight-loss drugmakers have emerged as a hot favorite among investors since the launch of new powerful treatments from Novo Nordisk and Eli Lilly. The global market for such drugs is expected to reach at least $100 billion by the end of the decade.
Vivani, which had a market value of $51 million as of Tuesday’s close, also said another implant, being developed for the treatment of type 2 diabetes, reduced weight in healthy rats in a different trial.
The Alameda, California-based company’s third experimental implant for humans, also for obesity, is being tested in pre-clinical trials.
Vivani is set to add as much as $398 million to its market cap if gains hold.
(Reporting by Puyaan Singh in Bengaluru; Editing by Sriraj Kalluvila)
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