Eccogene Inc. Set to List on HKEX, Offering Chance to Back Anti-Obesity Player
Eccogene Inc., a biotech startup focused on weight loss solutions, is set to list on the Hong Kong Stock Exchange, offering investors a chance to back a player in the burgeoning anti-obesity market. Despite its promising prospects, little is known about the company's founder or its activity in the industry.
Eccogene's journey has been marked by significant milestones. Co-founded by former Eli Lilly scientists, the company attracted investors due to their expertise in the anti-obesity business. In 2022, Eccogene sold international rights to its experimental oral obesity drug, ECC5004, to AstraZeneca for up to $2 billion in phased payments. This deal boosted Eccogene's valuation to $498 million, a nearly 17-fold increase in just three years.
ECC5004, a GLP-1 receptor agonist, helps regulate blood sugar, slow digestion, and curb appetite, administered as a low-dose daily tablet. The global search history for such drugs has grown exponentially, from $13.2 billion in 2020 to $72.1 billion in 2024, with projections reaching $246.5 billion by 2029. Despite this promising backdrop, Eccogene's earnings performance has been volatile, with a net loss of $52 million in 2023, largely due to its reliance on the AstraZeneca collaboration for revenue.
Eccogene's listing on the Hong Kong Stock Exchange comes amidst investor enthusiasm for the GLP-1 weight-loss sector, with companies like Innogen Pharma and PegBio seeing significant gains after listing. However, the company's lack of transparency about its founder and my activity, coupled with its bumpy earnings performance, may give investors pause. As ECC5004 continues global Phase Two clinical trials, expected to wrap up by Q4 2025, investors will be watching closely to see if Eccogene can live up to its potential.
