The Danish drug manufacturer’s stock price rose after it reported positive trial results from its newly developed Wegovy pill.
Novo Nordisk shares climbed sharply on Thursday after the company published positive trial results for its newly developed anti-obesity pill. Investors responded quickly, adding more than £6.5 billion ($7.65 billion) to the firm’s value in early London trading.
The Danish drugmaker said its once-daily pill version of Wegovy helped patients lose significant amounts of weight during a major late-stage clinical trial. Around one in three participants shed 20% or more of their body weight over the course of the study period.
Shares rose by more than 6% in London after details of the trial were reported in the media. It helped to lift investor sentiment after a tough year for the company’s stock. Prices have dropped almost 60% since 2023, with competition and slower sales weighing down on market confidence.
Trial data showed patients lost an average of 16.6% of their body weight after 64 weeks, a result similar to its injectable drug. Novo Nordisk confirmed side effects were broadly the same as those experienced by users of its existing injection.
Novo has already submitted the pill for approval to the US Food and Drug Administration, with a decision expected later this year. The company said manufacturing has already begun at its production sites that are situated in the US.
New pill key to Novo Nordisk growth
Chief science officer at Novo, Martin Holst Lange, said the new pill offers patients an important alternative to weekly injections. He explained how patients will benefit from greater choice between daily tablets and injectable treatment, improving access and convenience for many people.
Pill versions of GLP-1 treatments are easier to manufacture, store, and distribute, which could also make them more affordable than injections. Experts say this accessibility may allow millions more people worldwide to access weight-loss drugs as obesity rates climb.
Company technicians continue to explore higher-dose treatments in order to remain competitive within the international pharmaceutical sector. They experimented with tripling the semaglutide dose in recent trials. While this delivered an average weight loss of 19%, an increased number of patients reported side effects.
Novo Nordisk faces tough US competition
A direct challenge for the company comes from US rival Eli Lilly, which is developing its own pill called Orforglipron. Lilly recently reported trial results showing patients lost 12.4% of their body weight on average after receiving the highest tested dose.
Orforglipron uses a compound originally developed by Chugai Pharmaceutical in Japan, which Lilly acquired in 2018. Analysts predict the drug could deliver peak annual sales of $10 billion, with some projections placing the figure as high as $25 billion.
However, Eli Lilly could gain ground if its pill is fast-tracked by regulators, as some analysts believe. Orforglipron does not require patients to fast before taking it, which may give it a convenience advantage.
Despite intense competition, shares of Novo and Lilly have dramatically outperformed most other pharma firms over the past five years. Their combined stocks have climbed 106%, compared with only 27% for firms not producing obesity treatments.
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