August 7, 2025

The need-to-know this morning

Strand Therapeutics, a privately held developer of cancer drugs, raised $153 million in a Series B round of financing. The company intends to use the money to advance the development of an mRNA-based drug currently in early stage studies for the treatment of solid tumors.

obesity

Eli Lilly's key obesity pill falls short of rivals

Eli Lilly said this morning that its experimental obesity pill orforglipron fell short of expectations in a late-stage trial, delivering 11.2% weight loss over 72 weeks — less than the 15% to 21% reductions seen with injectables like Wegovy and Zepbound.

The results dampen excitement around one of Lilly’s most closely watched candidates, STAT’s Elaine Chen writes, which had previously shown promise in mid-stage trials and in people with type 2 diabetes.

Still, the pill’s oral, small molecule format could make it more accessible globally, especially in regions where obesity is rising. It would also be make easier to manufacture than a peptide.

pharma

But Lilly still beat on earnings

From my colleague Elaine Chen: Lilly also reported second-quarter earnings this morning — it beat estimates across the board and raised its guidance.

The company brought in total revenue of $15.6 billion in the second quarter, compared with the $14.8 billion predicted by analysts polled by Visible Alpha. Sales of Mounjaro and Zepbound also came in higher than expectations.

The pharma giant is raising its 2025 revenue guidance from a range of $58-$61 billion to a range of $60-$62 billion and its earnings per share guidance from a range of $20.78-$22.28 to a range of $21.75-$23.00.

The strong earnings report comes after competitor Novo Nordisk recently cut its growth outlook. But for now, investors will likely be much more focused on the orforglipron results.

Shares of Lilly were down in pre-market trading this morning, while ADR receipts of Novo were up.

cancer

Exact buys rights to Freenome colon cancer test

Exact Sciences is acquiring exclusive U.S. rights to Freenome’s blood-based colon cancer screening test for $75 million upfront, with up to $700 million in milestone payments. This bolsters the company’s position against rival Guardant Health, STAT’s Jonathan Wosen writes.

The deal follows disappointing results from Exact’s own blood test, which fell just short of Medicare reimbursement thresholds. Freenome’s test, currently under Food and Drug Administration review, showed stronger performance, with 81% sensitivity and 90% specificity. The partnership lets Exact pivot quickly into the blood testing market, while Freenome, which lacks commercial infrastructure, gains a route to patients.

RARE DISEASE

Sarepta Therapeutics hired Trump-linked lobbying firm

Sarepta Therapeutics hired Michael Best Strategies, a lobbying firm connected to President Trump, shortly after a teenage boy died after being treated with its Duchenne muscular dystrophy gene therapy, Elevidys, STAT’s John Wilkerson writes.

Among the lobbyists listed was Ninio Fetalvo, who worked in the White House and at the Centers for Medicare and Medicaid Services during the first Trump administration.

The move came before the FDA called for a halt to shipments of Elevidys — an order Sarepta initially resisted.

Research

Mouse study suggests lithium has therapeutical potential in Alzheimer's

A new study (in mice) suggests lithium — long used to treat bipolar disorder — could hold promise as a treatment for Alzheimer’s disease. A new Nature study found the metal is naturally produced in the brain, and depleted in patients with the disease.

By giving mice engineered to develop Alzheimer’s disease a dose of lithium orotate —enough to raise lithium to normal physiological levels — Harvard researchers were able to reverse learning and memory impairments and beta-amyloid plaque burden by 70% in aging mice, STAT’s Marissa Russo writes.

That said, lithium salts have been studied for Alzheimer’s in the past and didn’t yield promising results. But the studies used salts more similar to lithium carbonate, which this Nature study didn’t show to reduce cognitive decline or beta-amyloid plaques.

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