WHO Sidelines GLP-1 Drugs for Child Obesity as PepsiCo Faces Investor Pressure Over Same Threat

The World Health Organization released its first-ever guidelines on childhood obesity on October 7, endorsing lifestyle interventions such as diet and physical activity while stopping short of recommending GLP-1 receptor agonist drugs, a significant policy signal that pushes back against the rapid expansion of weight-loss medications like those made by Novo Nordisk into pediatric use.

The WHO decision reverberated across markets with direct implications for food and beverage companies already under pressure from the GLP-1 trend. PepsiCo, which faces activist scrutiny after Elliott Investment Management took a stake, is struggling to meet the growth and margin targets Elliott helped set, with investors watching closely for volume recovery and margin improvement in its North American operations. GLP-1 drugs pose a structural threat to PepsiCo's core salty snack and sugary drink businesses by suppressing appetite, and the company has limited time to demonstrate progress. PepsiCo shares were up roughly 0.4 percent in premarket trading.

On the innovation front, FibroBiologics filed a U.S. patent application for a cell-based technology designed to produce GLP-1 and other therapeutic peptides inside the body, positioning it as an alternative to the repeated injections that characterize current GLP-1 therapy. Separately, Arrowhead Pharmaceuticals received entry into the FDA's STAR Pilot Program for its RNA interference drug plozasiran in severe hypertriglyceridemia, a designation aimed at shortening the time from a complete supplemental new drug application submission to the agency's action date. Plozasiran has shown triglyceride reductions of up to 74 percent in clinical data and is being tracked across the seven major markets through 2034.

Tempus AI announced a multi-year strategic collaboration with Moderna and Merck to accelerate precision oncology research, leveraging Tempus's multimodal data repository and AI platform to optimize trial design and biomarker discovery for the companies' joint oncology programs, including mRNA-based personalized cancer treatments. Financial terms were not disclosed. AbbVie also received two FDA breakthrough therapy designations for Temab-A, adding to a busy day of regulatory milestones in the sector.

In a negative development, Caribou Biosciences said it would discontinue vispa-cel for relapsed or refractory B-cell non-Hodgkin lymphoma and CB-011 for relapsed or refractory multiple myeloma, effectively halting its clinical development pipeline. Shares fell sharply in premarket trading.