Novo Nordisk's market value jumped by approximately £9 billion on Thursday following positive clinical trial results for its new anti-obesity pill, a tablet version of the blockbuster drug Wegovy. The Danish pharmaceutical company reported that the once-daily pill led to significant weight loss, with nearly one in three participants losing 20% or more of their body weight.
In a 64-week late-stage trial involving 307 obese or overweight adults, patients on average lost 16.6% of their body weight. The pill, which is the first oral GLP-1 drug submitted to the US Food and Drug Administration (FDA), is expected to receive a decision on approval by the end of the year. Novo has already begun production at its US sites.
The news sent Novo Nordisk shares up more than 6%, reversing some of the nearly 60% decline over the past year. The company had faced slowing sales and several profit warnings, prompting new CEO Mike Doustdar to plan 9,000 layoffs. The pill is seen as a key opportunity to regain market share lost to rival Eli Lilly and cheaper generic GLP-1 drugs.
Eli Lilly is developing its own daily weight loss pill, orforglipron, which in a trial of 3,127 adults showed that one in five people lost 20% or more weight over 72 weeks. Patients lost 12.4% of their body weight on average at the highest dose. Lilly plans to submit its pill for FDA approval later this year, with some analysts predicting fast-track status.
Analysts see strong potential for Novo's oral pill. UBS analyst Matthew Weston forecast peak annual sales of $5 billion, citing “clear leadership” for Novo, though he noted that orforglipron could be more scalable and potentially cheaper. Pill versions are easier to store, distribute and administer, and are expected to be more affordable than injectables, which have seen price increases of up to 170% in the UK.
