On Wednesday, Eli Lilly & Co. ended a mid-stage study of its experimental drug bimagrumab in obesity patients with type 2 diabetes, just weeks after it began.

The company cited strategic business reasons for halting the trial, though a parallel study in non-diabetic obesity patients remains ongoing.

Citing a U.S. clinical trial registry updated Wednesday, the trial was shut down June 10, less than a month after its launch.

Also Read: Novo Nordisk's Wegovy Outperforms Eli Lilly's Tirzepatide In Reducing Risk Of Heart Attack, Stroke, And Death: Study

The Phase 2b double-blind, randomized, placebo-controlled study was evaluating the efficacy and safety of bimagrumab and tirzepatide, alone or in combination, in adult participants with obesity with Type 2 diabetes.

Bloomberg highlights that the drug is designed to preserve muscle while promoting fat loss, a challenge that has drawn attention from rivals including Roche Holdings AG (OTC: RHHBY), Regeneron Pharmaceuticals Inc. ( REGN ) , and Veru Inc. ( VERU ) .

All are seeking to compete with Lilly and Novo Nordisk A/S , the current leaders in the obesity treatment market.

The discontinued study planned to enroll 180 overweight or obese patients with type 2 diabetes over 13 months.

While its primary focus was weight loss, a key secondary measure tracked how much fat was lost compared to muscle. Lilly previously expected to report results from this trial by October 2026.

Bimagrumab Background

The company has heavily invested in bimagrumab, paying about $2 billion in 2023 to acquire Versanis Bio Inc.

In June, Lilly reported encouraging proof-of-concept data showing bimagrumab helped patients maintain muscle mass while losing weight on Wegovy, Novo's blockbuster obesity drug.

The drug works by blocking a receptor that regulates typically muscle growth.

Bimagrumab was originally developed by Novartis AG ( NVS ) and tested nearly a decade ago in a small diabetes trial.

That study showed promise but also raised safety questions after one participant developed pancreatitis and required hospitalization. Other studies have suggested that diabetes patients may face a higher risk of pancreatic inflammation.

Other Study

Eli Lilly ( LLY ) is recruiting patients in a separate Phase 2 study of bimagrumab and tirzepatide, alone or in combination, to investigate the efficacy and safety in adult participants with obesity or overweight without Type 2 diabetes.

The study will last about 70 weeks, and is expected to enroll 240 participants.

Price Action: LLY stock down 2.56% at $736.29 at the last check on Thursday.

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