Structure Therapeutics (GPCR +2.43%) ended 2025 on a strong note. Shares of the clinical-stage biotech soared in December after it reported strong mid-stage data for its leading pipeline candidate, an investigational weight loss medicine called aleniglipron. If Structure Therapeutics can make more progress toward entering the fast-growing anti-obesity market this year, we could see the company carrying the momentum it had last year through 2026.
But can the stock really deliver the kinds of returns it did last year? And is it worth investing in for those focused on the long game? Let's find out.
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Looking closer at aleniglipron
Aleniglipron is a once-daily oral GLP-1 candidate. In a 36-week phase 2b study, the medicine posted a competitive placebo-adjusted mean weight loss of 11.3% at the highest dose. In another ongoing mid-stage study featuring even higher doses of the drug, investigators observed a mean weight loss of up to 15.3% after 36 weeks. There was a 10.4% discontinuation rate due to adverse reactions in the first study, but that's pretty common with GLP-1 medicines.
Overall, tolerability was well within the norm for this class of drugs. Based on these results, Structure Therapeutics plans to initiate a phase 3 study for aleniglipron, likely this year. Structure Therapeutics does have other candidates in its pipeline. It recently initiated a phase 1 study for ACCG-2671, an oral weight loss candidate that mimics the action of the amylin hormone, which plays a role in regulating blood sugar and promoting satiety; it is increasingly becoming a target for drugmakers looking to develop breakthrough anti-obesity medicines.
Some risks to consider
Aleniglipron still has a long way to go before earning regulatory approval. In the meantime, it may encounter significant clinical or regulatory hurdles. True, it is taken orally, giving it a slight edge over some of the leading weight management therapies on the market, which are administered subcutaneously. Many patients will prefer pills over needles. And the former tend to be easier to manufacture, store, and transport, allowing them to be sold at lower prices.
However, by the time aleniglipron gets to the market, there should be at least two other oral medicines already approved. The U.S. Food and Drug Administration recently approved an oral formulation of Wegovy. It is also reviewing an application for orforglipron, another oral medicine, this one developed by Eli Lilly.
NASDAQ: GPCR
Key Data Points
Furthermore, Novo Nordisk has a dual GLP-1 and amylin receptor agonist in phase 3 studies in both subcutaneous and oral formulations. Of course, what ultimately matters most is efficacy -- if aleniglipron proves more effective than these and other similar weight loss drugs, it will still carve out a solid niche for itself in this vast and growing market. However, it's far too early to know whether that's the case. That makes Structure Therapeutics' shares somewhat risky at this point.
Is the stock worth buying?
It will be challenging for Structure Therapeutics to double again this year. With a market cap of $4.4 billion and no approved product, some might even argue that the market has gotten ahead of itself. The company's early-stage studies won't yield the kinds of results that will significantly impact the stock. Phase 1 studies tend to focus on safety and tolerability in a small number of patients. Testing efficacy comes in the later stages.
However, Structure Therapeutics could be a decent acquisition target for a large pharmaceutical leader looking to enter the weight loss space without having to undertake the difficult work of creating novel medicines from scratch. Considering how quickly the sales of weight management drugs are growing, this wouldn't be surprising at all. Still, long-term investors shouldn't bank on that happening.
In my view, Structure Therapeutics is far too risky for most investors, considering its shares could plummet at the mere sight of any clinical setback. Investors comfortable with heightened volatility may want to consider initiating a small position in the company, as it has ample upside potential despite the risk. However, risk-averse investors should look elsewhere.
