(Reuters)

OPKO Health and Entera Bio are partnering to develop a once-daily pill for patients with obesity and other disorders, the companies said on Monday.

WHY IT’S IMPORTANT

Drug developers are vying for a share of the weight-loss market, which is estimated to be worth about $150 billion by early 2030 and is currently led by Novo Nordisk’s Wegovy and Eli Lilly’s Zepbound.

Companies such as Pfizer, Amgen, Viking Therapeutics, Altimmune and Structure Therapeutics are aiming to join the bandwagon.

CONTEXT

OPKO and Entera are also planning to use the pill for metabolic disorders that affect the body’s processing of nutrients and fibrotic disorders where there is scarring of tissues and organs.

The companies will combine Entera’s technology and OPKO’s GLP-1 agonist OPK-88006 to develop the treatment.

BY THE NUMBERS

OPKO and Entera will be responsible for 60% and 40% of the drug’s development costs, respectively.

In connection with the execution of the agreement, OPKO purchased 3,685,226 ordinary shares of Entera for $2.17 per share, representing a premium of 15% to the stock’s last close on Friday.

MARKET REACTION

U.S.-listed shares of Israel-based Entera Bio were up more than 10% in premarket trading.