Shares in Danish drugmaker Novo Nordisk jumped by about £9bn on Thursday after clinical trial data showed its new anti-obesity pill achieved significant weight loss, nearly matching the efficacy of its injectable Wegovy. The stock rose over 6% as investors bet the oral treatment could help the company regain market share lost to rival Eli Lilly and cheaper generic GLP-1 drugs.
Novo Nordisk reported that a once-daily pill version of Wegovy helped patients lose an average of 16.6% of their body weight over 64 weeks in a late-stage trial involving 307 obese or overweight adults. Close to one in three participants lost 20% or more of their weight. The company has submitted the drug to the US Food and Drug Administration (FDA) and expects a decision by year-end, with production already underway at its US sites.
The announcement comes as Novo Nordisk faces stiff competition from Eli Lilly's oral weight-loss drug orforglipron, which showed a 12.4% average weight loss in a larger trial. Lilly plans to submit its pill for FDA approval later this year, with some analysts predicting fast-track status. UBS analyst Matthew Weston noted “clear leadership” for Novo’s oral obesity pill, forecasting peak annual sales of $5bn, but acknowledged orforglipron could be more scalable and potentially cheaper.
Novo Nordisk shares had fallen nearly 60% over the past year amid slowing sales and profit warnings, prompting new CEO Mike Doustdar to plan 9,000 layoffs. The company is racing to bring an oral GLP-1 drug to market, as pill versions are easier to store, distribute and administer, and are expected to be cheaper than injectables. The main technical challenge—the breakdown of semaglutide in the stomach—was overcome by adding an absorption enhancer.
The global obesity epidemic continues to drive demand for weight-loss treatments. While anti-obesity jabs have been popular, they remain expensive, especially after Lilly’s recent price increase of up to 170% in the UK. The NHS has restricted access to those with high clinical need. Pill versions could open the market to millions more people, with analysts estimating peak sales of $10bn to $25bn for orforglipron alone.
