Novo Nordisk shares climb after positive results for anti-obesity pill

Core Insights - Novo Nordisk's market value increased by approximately £9 billion following positive research results for its new anti-obesity pill, which shows weight loss comparable to its injectable Wegovy [1] - The company is competing with Eli Lilly to launch an oral treatment, with Novo's shares rising over 6% due to expectations of regaining market share lost to Eli Lilly and cheaper generic GLP-1 drugs [1] Company Performance - Novo Nordisk's shares had previously fallen nearly 60% over the past year due to slowing sales and multiple profit warnings, leading to plans for 9,000 layoffs by the new CEO Mike Doustdar [2] - The new once-daily pill version of Wegovy demonstrated significant weight loss in clinical trials, with nearly one in three participants losing 20% or more of their body weight [2][3] Clinical Trials and FDA Approval - The oral GLP-1 drug is the first of its kind submitted to the FDA, with a decision expected by the end of the year; production has already commenced at Novo's US facilities [3] - In a 64-week late-stage trial with 307 obese or overweight adults, participants lost an average of 16.6% of their body weight [3] Competitive Landscape - Novo Nordisk is in direct competition with Eli Lilly's orforglipron, which reported that one in five participants lost 20% or more of their weight over 72 weeks in a trial involving 3,127 adults [4] - Analysts project peak sales of $10 billion annually for Eli Lilly's orforglipron, with some estimates reaching up to $25 billion [5] Market Potential - UBS analysts forecast peak annual sales of $5 billion for Novo's oral obesity pill, with $4 billion expected from the US market, where 40% of the population is obese [6] - The oral versions of these drugs are anticipated to be more accessible and cost-effective, potentially allowing millions more individuals to manage obesity [7] Industry Trends - The performance of GLP-1 drugmakers has significantly outpaced that of pharmaceutical companies not involved in weight loss drug production [8]