Olix Could Become Sole Licensing Target in ALK7 Obesity Drug Race

Olix's valuation could be reassessed depending on clinical results for rival ALK7-targeting obesity drugs, according to a new analysis. With global competitors having either licensed out or continuing in-house development of ALK7-targeting obesity treatments, Olix could stand out as effectively the only licensing candidate available to big pharma.

In a report on the 17th, Shinhan Securities said the lock-up on about 1.66 million convertible preferred shares expired on the 15th and their conversion into common stock has been completed, easing concerns about a potential overhang of shares for sale. "With competitors including Alnylam and Arrowhead set to release the first clinical results for ALK7-targeting treatments in obesity in the second half, Olix's ALK7 pipeline should also draw attention," the brokerage said.

Olix is developing OLX501A, a small interfering RNA (siRNA)-based obesity treatment that selectively reduces body fat, including visceral fat. In preclinical testing, obese monkeys given OLX501A showed a 29.2% reduction in visceral fat after 49 days, compared with a 10% reduction in the group given a competing compound. Olix is aiming to file an investigational new drug application in the first half of next year.

Global rivals are also accelerating development of RNA-based obesity drugs targeting ALK7. Arrowhead is running a Phase 1/2a trial of ARO-ALK7, which targets fat tissue, while China's Sirnavant has entered a Phase 1 trial of its obesity treatment SA030.

If the rival trials confirm ALK7's efficacy, Olix could emerge as a new licensing candidate for global drugmakers, the analysis said. Results from Arrowhead's Phase 1/2a trial of ARO-ALK7 and from Alnylam's Phase 1 trial of ALN-2232 are both due in the fourth quarter. Both companies plan to continue developing their drug candidates in-house, while SA030 was licensed to GlaxoSmithKline (GSK) this year.

Olix's other programs are also advancing through clinical stages. OLX702A, a treatment for metabolic dysfunction-associated steatohepatitis (MASH) licensed to Eli Lilly, is preparing to enter Phase 2. OLX104C, a treatment for androgenetic alopecia, has expanded its Phase 2a trial to additional countries including New Zealand, and OLX301A, a treatment for macular degeneration, recently began a global Phase 2a trial.