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After announcing on Monday that it’d be moving into the GLP-1 weight loss drugs space, ASX-listed former IPO darling skin healing tech company Tetratherix (ASX:TTX) has dropped as much as -18% intraday Tuesday.
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That downward swing comes just 48 hours after the share price first spiked considerably on the back of the GLP-1 announcement, which obviously has not been enough to sustain hype for even half a week.
The move could prove to be poor timing, or perhaps not as revolutionary as Tetratherix may (or may not) be hoping. Overnight, HSBC analysts came out with their prediction that the GLP-1 market (or the basket of stocks that make them) is due for a correction soon – and they even went so far as to say that projections the obesity drug market could be worth US$150B are overblown.
Overnight, U.S. drug giant Eli Lilly, which makes Ozempic competitor drug Wegovy, was the second-worst performer on the S&P 500.
That was after HSBC effectively told clients to sell stocks in Lilly.
Reading here: Analysts appear to think the top is in.
“Whilst the execution at Lilly has been good so far, we think the risk of paying up for its bullish worldview embedded in the guidance is unattractive,” analysts for the London-headquartered bank wrote.
And the news over at Novo Nordisk, which makes Ozempic, hasn’t been great either. That company effectively downgraded sales guidance for 2026, which came in well under market expectations. That’s after that company’s stock already declined over -70% last year.
And now Tetratherix, a company that doesn’t really have any business dealing with weight loss medications at all, except that it says GLP-1 drugs will use its “polymer platform” to be consumed nasally.
This finance journalist isn’t sure what that means and hasn’t bothered disentangling it, because it still doesn’t address the fact Tetratherix’s main value proposition is at least one world apart from GLP-1 drug development, if not multiple worlds.
And then there’s another question: If the smart money is getting out of GLP-1, and Tetratherix just picked up rights to such a product – did the former biotech IPO darling of 2025 just buy a lemon?
To put light on another view, as one netizen acquaintance of this finance journalist put it: “Tetratherix is allergic to being over $5.” Hopefully, that’s just it.
TTX last traded at $4.86/sh.
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