An oral drug developed by Terns Pharmaceuticals, a leading bio pharmaceutical company based in US, has been found promising in treating obesity.

The company confirmed on Monday that when taken once in a day orally, its drugTERN-601 was effective in achieving a weight loss ofabout 4.9 percent in just 28 days.

Through these developments, Terns has entered the profitable market of weight loss treatmentand thus achieved a 27 percent spike in its shares, Reuters reported.

The company conducted a clinical trial to check safety and efficacy of the medicine.The trial was conducted in two parts. In the first part, which was a single ascending dose study, experts checked effectiveness of five TERN-601 dose levels in healthy people.The starting dose was 30 mg.

In the second part of the trial, both obese and overweight healthy adults received titration of TERN-601 for a period of 28 days. Data from first part of the trial was used to decide the dosage.

At the end of its first stage trial, the company found that taking a 740-milligram dosage once in a day helped reduce weight. Of the total participants, about 67 percent lost five percent or more of their baseline body weight at the top dose. The drug was found safe too.

"TERN-601 has distinct properties that may be advantageous for an oral GLP-1R agonist. Its low solubility and high gut permeability may result in prolonged absorption allowing for sustained target coverage and a flat PK curve, while high drug levels in the gut wall may lead to robust GLP-1R activation in the gut triggering satiety centers in the brain," the company, while explaining the mechanisms behind its drug, said in a statement.

In order to reconfirm its findings, Terns Pharmaceuticals is planning to conduct a second phase clinical trial in 2025.

"These data validate the potential of TERN-601 for the treatment of obesity as monotherapy or in combination with agents such as TERN-501, our internally discovered, clinical stage THR-β agonist, or a GIPR modulator from our TERN-800 series. With operational preparations well underway, we look forward to swiftly advancing this promising product candidate into Phase 2 clinical development in 2025,"Terns' chief executive officer Amy Burroughs, said in a statement.

Injectable prescription medications like Wegovyof Novo Nordisk and Zepboundof Eli Lilly are already available in the market to help treat obesity.

It was in July this month an obesity pill developed by the Swiss drug maker Roche found effective in achieving weight loss.

Terns' oral drug is expected to give a more convenient alternative to injections being developed by Pfizer and Roche, according to Reuters.

Some analysts told the news agency that by the beginning of 2030, the market for weight loss pills will reach $150 billion. To fund the upcoming trials of TERN-601, the company has started a proposed stock offering of $125 million of its shares.

The news of the obesity drug brings hope to billions of people affected by obesity. According to the World Health Organization (WHO), in 2022, one in eight people in the world was obese. Several studies in the past have linked obesity to hearing loss, ovarian cancer, and dementia. Additionally, obesity has also been known to increase the risk of stroke, type 2 diabetes, heart disease, sleep apnea, infertility, hypertension, liver and gallbladder disease.