Novo Nordisk's shares soared by more than 6% on Thursday, adding approximately £9bn to its market value, after the Danish drugmaker announced positive clinical trial results for a tablet version of its blockbuster weight-loss drug Wegovy. The oral pill, which contains the same active ingredient semaglutide, demonstrated significant weight loss in a late-stage trial, bringing it a step closer to market.
The 64-week trial involving 307 obese or overweight adults showed that patients lost an average of 16.6% of their body weight, with nearly one in three participants losing 20% or more. The side effects were similar to those of the injectable version. Novo Nordisk has already submitted the pill to the US Food and Drug Administration (FDA) and expects a decision by the end of the year.
The development comes as Novo Nordisk faces stiff competition from US rival Eli Lilly, which is developing its own daily weight-loss pill, orforglipron. In a separate trial, Eli Lilly reported that patients lost an average of 12.4% of their body weight at the highest dose, with one in five losing 20% or more. Eli Lilly plans to submit its pill to the FDA later this year, with some analysts predicting fast-track approval.
Analysts have mixed views on the market potential. UBS analyst Matthew Weston sees “clear leadership” for Novo’s oral obesity pill, forecasting peak annual sales of $5bn, including $4bn in the US. However, he noted that orforglipron could be more scalable and potentially cheaper, and does not require fasting for 30 minutes before taking, making it more convenient.
The race to bring an oral GLP-1 drug to market is intensifying as pill versions are easier to store, distribute, and administer, and are expected to be cheaper than injectables. This could expand access to weight-loss treatments amid rising global obesity rates. Novo Nordisk’s shares had fallen nearly 60% over the past year due to slowing sales and profit warnings, leading to planned layoffs of 9,000 employees.
