Its results lagged that of Novo Nordisk’s star product, Wegovy.
On Friday, the stock of Novo Nordisk (NYSE: NVO) continued to be affected by results from the lab the previous day. The interesting twist: It wasn’t the company conducting the research.
Rather, it was the Danish pharmaceutical company’s No. 1 rival. Appreciative investors bid up Novo Nordisk’s stock in a mini-rally that extended into Friday; the company’s share price added nearly 5% during today’s session.
That looked especially good next to the trajectory of the S&P 500 index, which could only manage a 0.8% increase on the day.
The previous day, that peer, Eli Lilly, reported the top-line results from a phase 3 trial of orforglipron. This is a pipeline GLP-1 drug akin to Novo Nordisk’s Wegovy or Eli Lilly’s own Zepbound, targeting weight loss. A key difference is that it’s an oral medication, and thus easier to administer than the jabs of Wegovy and Zepbound.
The company revealed that the highest dose of the medication led to an average of nearly 12% loss in body weight for the study’s participants. The trial was conducted over a stretch of 72 weeks. Many analysts and pharmaceutical industry observers were expecting a higher rate: 15% or so.
More than a few believe orforglipron’s rate compares unfavorably to Wegovy, hence Novo Nordisk’s small share-price pop.
This, despite Eli Lilly’s positive spin on the trial. In an interview on CNBC’s Squawk Box, CEO David Ricks said that he was not disappointed with these results: “It’s right on thesis for us.”
“The goal was to create an oral pill that was convenient and can be made at a huge scale, really, for the mass market, and had weight loss that was competitive with other single-acting GLP-1s, and that’s what we’ve achieved,” Ricks said.
This may be so, but GLP-1 weight loss drugs are a duopoly at the moment, with Wegovy and Zepbound, so the segment is tight and competitive. Any advantage is large, and with this latest news, Novo Nordisk seems to be enjoying one.
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