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Novo experimental obesity drug more effective than Wegovy in trial, shares surge

Published 03/07/2024, 05:58 AM
Updated 03/07/2024, 06:39 AM
© Reuters.

Investing.com -- Copenhagen-listed shares in Novo Nordisk (NYSE:NVO) (CSE:NOVOb) touched a fresh record high on Thursday after the Danish pharmaceutical giant unveiled data for its experimental obesity drug that suggested it was more effective than its blockbuster Wegovy therapy.

In a presentation at an investor event, Novo said that a Phase 1 trial of the oral treatment, known as amycretin, found that it led to 13.1% weight loss after 12 weeks. Patients using Wegovy, by comparison, have shed around 6% of their weight over the same time period.

The announcement was cheered by investors as a fresh boost to Novo's ongoing push to secure its place in the burgeoning market for weight-loss treatments. Industry executives and analysts have estimated that these drugs could bring in up to $100 billion in annual sales within a decade.

In January, Novo said the soaring success of both Wegovy and Ozempic -- a diabetes drug containing the same active ingredient -- would help sales and operating profit grow in the double digits this year. Despite an expected decline in prices for the drug, volumes are projected to continue expanding, Novo has said.

Demand for the therapies has been so strong that Novo has been struggling to arrange supplies. In response, Novo has said it would more than double the supply of lower strength doses of Wegovy in the U.S.

Meanwhile, a large study has also found that Wegovy, which promotes weight loss by mimicking a hormone called GLP-1 that targets areas of the brain responsible for regulating appetite, had a clear cardiovascular benefit as well.

With this in mind, Novo told shareholders that it is now looking to "build a presence" in emerging treatments for cardiovascular disease, adding that it will move to strengthen its offerings through "internal and external candidates." It also plans to "maximize" ziltivekimab, a heart failure treatment that is currently under clinical development.

The company noted, however, that "diabetes and obesity remain the key priority areas in the focused corporate strategy."

Shares in Eli Lilly (NYSE:LLY), which has launched its own rival weight-loss therapy in the U.S. and Europe, fell in premarket trading in New York.

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