Lilly's next-gen obesity drug shows reduction in blood sugar levels in trial

March 19 (Reuters) - Eli Lilly LLY.N's next-generation obesity drug showed a reduction in blood sugar levels during a late-stage trial, the drugmaker said on Thursday, as it looks to widen its lead in the heavily contested market for GLP-1 drugs.

Drug developers are racing to enter the highly competitive and booming obesity market dominated by injectable drugs such as Novo Nordisk's NOVOb.CO Wegovy and Lilly's Zepbound, prompting heavy investment in next-generation treatments that could deliver faster, deeper, or more durable weight loss.

Lilly tested the drug, retatrutide, in patients with type 2 diabetes who had inadequate glycemic control with diet and exercise alone, and a mean duration of diabetes of two and a half years.

During the 40-week trial, retatrutide reduced A1C, a measure of blood sugar over time, by an average of 1.7% to 2.0% across doses compared to an average reduction of 0.8% in placebo.

For a key secondary goal, patients who took the drug lost up to an average of 16.8% of their weight.

Overall, side effects were in line with those typically seen in weight-loss treatment trials, the company said, including gastrointestinal issues such as nausea, diarrhea and vomiting.

In a previous trial, retatrutide helped patients lose an average of 28.7% of their weight, outperforming Lilly's blockbuster drug, Zepbound.

Retatrutide is a once-weekly injected drug designed to mimic the action of the GLP-1 hormone, which helps regulate blood sugar, slow stomach emptying and decrease appetite.

The drug activates three hormone receptors - GLP-1, GIP and glucagon - earning it the nickname "triple G". Triple-G weight loss drugs are expected to produce greater weight loss than earlier generations by combining appetite suppression, blood sugar control and increased calorie burning.

Lilly is also developing its weight-loss pill, orforglipron, which the company expects to launch in the second quarter of this year once it gets approval from the U.S. Food and Drug Administration.