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Kailera Therapeutics Slumps as Weight Loss Drug Trial Reveals Side Effects

Investors pushed Kailera Therapeutics shares down 7% to $21.86 following reports that the company’s experimental weight loss drug, HRS-7535, triggered high rates of gastrointestinal distress during clinical trials. The stock is now down 16% for the year as the market weighs efficacy against significant patient discomfort.

Kailera Therapeutics Slumps as Weight Loss Drug Trial Reveals Side Effects

While the drug demonstrated clinical promise by achieving a mean weight loss of up to 11% by week 50 and lowering HbA1c levels in type 2 diabetes patients by 1.5% to 1.7%, the physical toll on participants proved substantial. Data from week 44 showed nausea affecting approximately 70% of subjects, with vomiting rates reaching 69% and diarrhea impacting up to 37% of the cohort. No liver safety signals emerged during the study, providing a rare bright spot in the trial results.

Chief Medical Officer Scott Wasserman remains optimistic, framing the small-molecule oral treatment as a potentially more scalable and accessible alternative to current injectable therapies. The company is now pivoting focus toward a global Phase 2 trial for its KAI-7535 candidate. Results from that study are not expected until 2027, leaving shareholders to wait several years for further clarity on the drug's commercial viability.

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