Epitomee's product expands in the stomach, giving a sense of satiety. The big challenge now will be marketing. Epitomee Medical (TASE: EPIT), chaired by serial biomed entrepreneur Shimon Eckhouse, has announced the receipt of US Federal Drug Administration (FDA) approval for the sale of its weight management pill in the US.
The pill expands in the stomach, giving a sense of satiety. Following the report, Epitomee’s share price shot up by 152% yesterday, and is up by a further 27% so far today. The company’s market cap at yesterday’s close was NIS 232 million, still 75% below its valuation in its flotation on the Tel Aviv Stock Exchange in December 2021.
The FDA approval was fairly predictable. The real challenge will be in marketing the product (the company has yet to record sales). Epitomee was to have entered the slimming market with food giant Nestlé, but the latter withdrew from the marketing agreement between the companies at the end of 2023, which is what led to the drop in Epitomee’s share price.
Nestlé said that although results of clinical trials of the pill indicated a statistically significant, and substantial, weight loss from its use, they were not sufficient for it to stand behind marketing of the product. The background to Nestlé’s decision was significant changes that had taken place in the market for obesity prevention products since Epitomee was founded, and even since its flotation. Eli Lilly and Novo Nordisk brought weight-loss inducing dru.