Novo Nordisk shares soar as breakthrough antiobesity pill nears market debut

Novo Nordisk, headquartered in Copenhagen, has seen its shares surge by more than 6 per cent after unveiling promising results from a late-stage clinical trial of its new anti-obesity tablet. The pharmaceutical company gained approximately £9 billion in value in a single trading day, providing a much-needed boost after nearly 60 per cent was wiped from its valuation over the past year due to slowing sales and profit warnings.

The oral treatment, a tablet version of the existing Wegovy injection, enabled participants to achieve significant weight loss, with close to one in three shedding 20 per cent or more of their body weight during a 64-week trial. On average, adults lost 16.6 per cent of their body weight. Side effects mirrored those observed with the injectable Wegovy. This marks the first oral GLP-1 therapy to be submitted to the US Food and Drug Administration, with approval anticipated by year-end. Novo Nordisk has already initiated pill production at its American facilities.

Novo Nordisk is in a race for market share against Eli Lilly, its US competitor, which recently reported strong results for its own daily weight-loss pill, orforglipron. In a separate 72-week study involving over 3,000 adults, one in five participants lost at least 20 per cent of their body weight, while the highest dose led to an average reduction of 12.4 per cent. Analysts expect annual sales of orforglipron could reach $10 billion, potentially rising to $25 billion.

Despite fierce competition, Novo Nordisk is forecast by UBS analyst Matthew Weston to lead the oral obesity drug market, with peak annual sales predicted to reach $5 billion, including $4 billion from the United States. However, orforglipron may prove more scalable and convenient, as it does not require a fasting period, and could command a lower price point.

GLP-1 drugs, which imitate gut hormones to trigger weight loss, remain highly sought after, though their high cost has led to restricted availability within the UK’s NHS. The arrival of oral formulations – easier to distribute, administer, and likely less expensive – could unlock access to millions battling obesity worldwide.

Developing a tablet format for semaglutide, the active ingredient in Wegovy, was a scientific feat due to its vulnerability to stomach acid. Novo Nordisk overcame this hurdle by incorporating an absorption enhancer to improve delivery into the bloodstream. The result is a new weapon in the fight against obesity, as increasing competition drives further innovation and market expansion.