Novo Nordisk Gains Ground as Eli Lilly's Pill Disappoints
Novo Nordisk shares surged after Eli Lilly's weight-loss pill underperformed expectations in trial results. This setback is prompting investors to re-evaluate the competitive state of the GLP-1 obesity drug market, favoring Novo's oral semaglutide. Despite recent challenges, Novo Nordisk regains confidence amidst rival setbacks.
Shares in Novo Nordisk soared as much as 14% on Thursday following trial data from Eli Lilly's new weight-loss pill that fell short of projections, reinforcing investor confidence in the Danish company's leading position in the obesity treatment sector. The shares later settled with a 9% increase at 1240 GMT.
Expectations were high for Eli Lilly's orforglipron pill to stand as a formidable rival to Novo's existing weight-loss drugs. However, Thursday's results did not meet these expectations, prompting investors to reassess the competitive dynamics in the GLP-1 obesity drug market—a shift that ends up benefiting Novo Nordisk's oral semaglutide.
While Eli Lilly's shares fell by 7.8% premarket at 1152 GMT, the broader competition between injectable and oral GLP-1 drugs is redefining obesity treatment offerings, as companies compete to deliver optimal results and patient safety. Despite recent declines, Novo Nordisk is regaining investor trust, aided by its domestic peer Zealand Pharma and Germany's Gerresheimer experiencing stock gains.
(With inputs from agencies.)
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