Novo Nordisk traded higher in the U.S. following a string of wins for the drugmaker's star weight-loss treatment, Wegovy.
The U.K.'s healthcare regulator said Friday that it had approved a higher dose of semaglutide, which sold under the brand name Wegovy for weight loss. The maximum dose of up to 7.2 milligrams per week is a significant step up from the former 2.4 mg limit. The dose is to be administered as three separate injections, strictly in adult patients with obesity.
Separately, new data shows Novo's Wegovy pill racked up 3,071 prescriptions during its first week on the market. The data only tracks retail prescriptions and doesn't account for those filed through Novo's online pharmacy, meaning the actual figure will be higher, Barclays analysts said.
U.S.-listed shares of Novo climbed 9.1%, their largest same-day percent increase since March 2024, according to Dow Jones Market Data. Rival weight-loss drugmaker Eli Lilly gained 0.5%.
Semaglutide, sold under the brand names Wegovy and Ozempic, has helped Novo establish a foothold in the market for weight-loss drugs. Ozempic was approved for the treatment of Type 2 diabetes in 2017, followed by Wegovy for chronic weight management in 2021.
One might expect that gives Novo a first-mover advantage, but Eli Lilly's Zepbound has gained significant market share, forcing Novo to find ways to be more competitive.
One step was the introduction of an oral version of its blockbuster weight-loss treatment. The Wegovy pill launched in the U.S. on Jan. 5, with a final decision on regulatory approval expected in the U.K. by the end of the year.
The pill's launch dominated the conversation at the J.P. Morgan Healthcare Conference this week. Novo CEO Mike Doustdar said the company had relaunched its home-delivery platform, NovoCare Pharmacy, on the back of its release.
"Right now, we are being judged -- how many patients are being switched between us and Eli Lilly," Doustdar said. "A big part of those people, by the way, don't want an injection. They're waiting for the pill. So going into expanding the market has been very, very important."
Berenberg analysts believe the oral medication could bring in roughly $1 billion this year. Higher-than-expected sales could offset obstacles such as U.S. price cuts and patent expiries, the analysts said.
The bank forecasts sales of $2 billion by 2027, but says the number could be as high as $6 billion so long as Novo maximizes its head start over its closest rival.
Lilly is currently developing its own weight-loss pill, an oral GLP-1 called orforglipron, that's expected to release this year. The company said last month that it had submitted a new drug application to the Food and Drug Administration.
Also in December, Lilly released data showing how orforglipron could help patients maintain weight loss after taking Wegovy or Zepbound. Participants in the study were able to switch directly from the highest tolerated doses of injectables onto oral doses of orforglipron, Lilly said.
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