Why Roche Holdings Stock Withered on Wednesday

For the second trading session in less than a week, Roche Holding (OTC: RHHBY) stock really took it on the chin Wednesday. Dispiriting news about its investigational obesity drug was the culprit; disseminating this, investors sold out of the pharmaceutical veteran. At the end of the day's action, Roche had lost almost 6% of its value.

In a meeting of the European Association for the Study of Diabetes that day, Roche presented the results of an early-stage clinical trial of its CT-996 pill.

This is the Switzerland-based company's bid to compete in the very high-potential weight-loss drug market. At the moment, this is dominated by fellow European pharmaceutical company Novo Nordisk's Wegovy. A more recent arrival, muscular U.S. peer Eli Lilly, is also competing in the segment with its Zepbound.

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Source Fool.com