Mar 7, 2024,07:00am EST
Shares of Novo Nordisk, the Danish pharmaceutical giant, surged to an all-time high on Thursday following the release of promising data on a new weight loss pill. This development underscores the company’s strategic efforts to solidify its leading position in the rapidly growing obesity drug market, despite facing formidable competition from industry giants like Eli Lilly and a myriad of smaller biotech startups.
Here are the key points:
In an early-stage clinical trial presented at an investor event, participants who received Novo Nordisk’s experimental weight loss treatment, amycretin, experienced a remarkable 13% reduction in weight over a 12-week period.
Amycretin, an oral medication, targets the same GLP-1 hormone as other weight loss drugs such as Novo’s Wegovy and Lilly’s Zepbound. Additionally, it stimulates another hormone, amylin, which regulates hunger.
The trial results, although not yet published or subjected to external scientific scrutiny, outperformed the weight loss achieved with Novo’s blockbuster drug Wegovy, which stood at approximately 6% over 12 weeks.
Novo Nordisk reported that amycretin appeared to be safe and well-tolerated, with a side effect profile similar to its other medications in the field, like semaglutide, the injectable GLP-1 drug marketed as Ozempic for diabetes and Wegovy for weight loss.
While acknowledging the trial’s limited scope, Martin Lange Holst, Novo’s head of development, emphasized the promising outcomes, justifying further research into the pill. Novo plans to proceed with a larger Phase 2 trial in the latter half of this year, with results anticipated in early 2026.
What to anticipate:
Novo is also exploring a subcutaneous formulation of amycretin, akin to Wegovy, which would be administered via regular injection. The early-stage trial is ongoing, and data may be released in 2025.
Background insights:
Novo Nordisk has long been a frontrunner in diabetes treatment. However, its venture into obesity drugs has propelled it to become one of Europe’s most valuable companies. Analysts predict that the anti-obesity market could reach up to $100 billion by the end of the decade, presenting a lucrative opportunity for pharmaceutical firms. Novo, alongside Eli Lilly, dominates this sector and is actively defending its position against emerging competitors like Viking Therapeutics. Both companies are expanding their drug portfolios and formulations, including pills, while fortifying their supply chains to mitigate ongoing shortages. They are also exploring new indications for their drugs, with promising indications of reducing the risk of cardiovascular problems and other health issues.
On a related note:
Novo Nordisk’s stock surged by nearly 6% during the company’s investor presentations on Thursday, reaching a historic peak. Since the beginning of the year, Novo’s stock has grown by almost 30%, reflecting investor confidence in the company’s future prospects.