Yahoo Finance Novo Nordisk Stock Rises as Oral Obesity Pill Outshines Wegovy
Shares of Novo Nordisk NVO gained 4.2% on Sept. 11 after the company presented encouraging detailed efficacy data from the early-stage study of its new, investigational oral obesity pill, amycretin, at the European Association for the Study of Diabetes meeting in Madrid.
NVO’s Amycretin Shows Efficacy Superior to Wegovy in Study
Novo Nordisk’s oral obesity pill, amycretin, showed faster weight loss than its blockbuster weekly injection for chronic weight management, Wegovy (semaglutide), in the phase I study. Per the data, patients receiving the highest dose of amycretin experienced a 13.1% reduction in body weight after 12 weeks, while those receiving the low dose lost around 10.4%.
In stark contrast, Wegovy only showed a weight loss of around 6% after 12 weeks and around 15% after 68 weeks in clinical studies.
Treatment-related adverse events in the phase I study of amycretin for obesity were mostly mild to moderate in severity, which were in line with those of Novo Nordisk’s semaglutide drugs. Semaglutide is approved as Ozempic pre-filled pen and Rybelsus oral tablet for type II diabetes and as Wegovy for obesity.
We remind the investors that Novo Nordisk had previously presented initial efficacy data from the phase I obesity study on amycretin, at its Capital Markets Day in March 2024. The company had reported that treatment with the candidate resulted in a 13.1% weight reduction after 12 weeks compared with a decrease of 1.1% in the placebo arm.
Year to date, shares of Novo Nordisk have jumped 30.7% compared with the industry’s 24.2% growth.
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The greater efficacy observed in the case of oral amycretin compared with Wegovy was due to the differences in the mechanisms of action of the drugs. Wegovy contains semaglutide, which only targets a hormone called GLP-1 to trigger weight loss. However, amycretin targets GLP-1, as well as a second hormone called amylin. Notably, amylin originates in the pancreas and is responsible for reducing food intake by delaying stomach emptying, as well as decreasing blood glucose levels, leading to the reduction of body weight.
Impact of NVO’s News on Other Obesity Drug Makers
The encouraging results from the phase I study of amycretin also led to the rise of the share prices of other drugmakers on Wednesday like Eli Lilly LLY, Viking Therapeutics VKTX and Structure Therapeutics GPCR, who are also developing oral pills for obesity treatment.
The obesity market is currently dominated by Novo Nordisk and Lilly,which are the only two companies to market obesity drugs. Lilly’s drug is called Zepbound and contains an ingredient called tirzepatide. Both Wegovy and Zepbound have witnessed unparalleled success in this market space due to exceptionally strong demand. However, both Wegovy and Zepbound are administered as weekly injections. Novo Nordisk, Lilly and some other drugmakers are making oral medicines for obesity, which can improve patient convenience.
LLY is developing orforglipron, an oral GLP-1 small molecule, in late-stage studies. It is investing heavily in obesity and has 11 new molecules that are currently undergoing clinical development, including two late-stage candidates, orforglipron and retatrutide, a GGG tri-agonist. Several phase III data readouts are expected in 2025. Lilly’s shares were up 2.2% on Wednesday.
Viking Therapeutics is developing VK2735 as a subcutaneous injection, as well as an oral pill for treating obesity. VKTX plans to advance the subcutaneous formulation to late-stage development and start a mid-stage study on the oral formulation before 2024-end. Viking Therapeutics’ shares were up 11.3% on Wednesday.
Structure Therapeutics is also conducting multiple mid-stage studies on its candidate, GSBR-1290, a highly selective oral GLP-1 receptor agonist, for treating healthy overweight or obese individuals. Structure Therapeutics’ shares rose 15.2% on Wednesday. All these oral candidates for obesity have shown substantial weight loss in clinical studies.
Novo Nordisk A/S Price and Consensus
Novo Nordisk A/S price-consensus-chart | Novo Nordisk A/S Quote
Zacks Rank
Novo Nordisk currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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