Novo Nordisk announced positive trial results for its next-generation obesity drug, leading to a 7.13% surge in its share price on Friday.
Europe’s largest pharmaceutical firm, Novo Nordisk, revealed positive trial results for its next-generation obesity drug, amycretin, marking a major step in its competition within the increasingly heated weight-loss drug market, particularly against its US rival Eli Lilly.
The trial results showed that patients taking the highest dose of 20 milligrams achieved an estimated body weight loss of 22% over 36 weeks, compared to a 22.5% weight loss achieved by Lilly’s obesity treatment Zepbound over 72 weeks.
The latest trial results of Lilly’s next-generation drug, retatrutide, demonstrated an average weight reduction of 24.4% over 48 weeks.
Novo Nordisk’s shares rose by as much as 14% during Friday’s trading before paring gains to close 7.13% higher in Copenhagen. Meanwhile, Eli Lilly’s stocks dipped 1.2% at the US market open but later recovered, closing up 2.45% on the day.
Despite Friday’s rally, Novo Nordisk’s shares have underperformed, falling by 14% over the past 12 months, while Eli Lilly’s stock has surged by 24% during the same period.
On 21 December of last year, the Danish pharmaceutical company experienced a 21% plunge in its share price following disappointing trial results for its new obesity drug, CagriSema.
A next-generation weight-loss drug
Amycretin is considered as Novo Nordisk’s most competitive treatment in its weight-loss pipeline for obesity and type-2 diabetes, as the patent for its blockbuster drug Wegovy is set to expire in the early 2030s.
“We are very encouraged by the subcutaneous phase 1b/2a results for amycretin in people living with overweight or obesity,” said Ematin Lange, executive vice president for development at Novo Nordisk.
Amycretin represents an advancement over existing treatments, mimicking both the glucagon-like peptide-1 (GLP-1) hormone and a hormone called amylin to enhance feelings of satiety and regulate blood sugar levels.
In comparison, Novo Nordisk’s current obesity drug, Wegovy, focuses on GLP-1, which influences fullness and reduces food intake. The company’s other well-known drug, Ozempic, specialises in treating diabetes.
According to Novo Nordisk, the trial investigated once-weekly subcutaneous injections of amycretin in 125 participants.
Results indicated an estimated body weight loss of 9.7% with a 1.25-milligram dose over 20 weeks, 16.2% with 5 milligrams over 28 weeks, and 22.1% with 20 milligrams over 36 weeks.
The most common side effects were gastrointestinal, with the vast majority mild to moderate in severity.
Novo Nordisk plans further clinical development of amycretin for adults with overweight or obesity, following these promising results.
In October, Novo Nordisk reported robust third-quarter earnings, with Wegovy sales up 79% year-on-year.
The company is scheduled to release its fourth-quarter and full-year earnings results on 5 February.
Growing competition in oral treatment
Despite the positive trial results, Novo Nordisk faces mounting competition in the field.
Earlier this month, Eli Lilly CEO David Ricks stated in a Bloomberg TV interview that the company’s experimental weight-loss pill, orforglipron, could receive regulatory approval as early as this year.
Oral treatments, such as orforglipron, offer greater convenience than injections and are more cost-effective to manufacture.
In a mid-stage trial, orforglipron showed weight loss of 14.7% over 36 weeks.
Novo Nordisk is also developing amycretin as a once-daily pill, with trial results indicating a 13.1% weight reduction. However, this formulation was associated with numerous side effects.
Separately, trials for Novo Nordisk’s oral semaglutide showed an average weight loss of 15% over 68 weeks.
