Stocks for Novo Nordisk surged by over 13% on Friday, driven by positive results from early clinical trials of its new weight-loss drug, amycretin. This increase marks the most significant rise for the company since August and flips its stock's performance for 2025 back to positive territory. Investors are reacting with enthusiasm to the trial results, which indicate the drug can result in substantial weight loss for patients.
Amycretin, administered via weekly injection, demonstrated remarkable results during tests, with participants losing as much as 22% of their body weight over 36 weeks. This figure stands in stark comparison to the placebo group, which actually experienced slight weight gain. Martin Lange, Novo Nordisk's Executive Vice President for Development, expressed his satisfaction with the findings, stating, "The results confirm the groundbreaking potential of this GLP-1 and amylin receptor agonist."
The earlier study included 125 participants with obesity or overweight statuses, examining both the safety and efficacy of amycretin. At the low dose, participants lost 9.7% of their body weight after 20 weeks, rising to 16.2% at the medium dosage after 28 weeks, and hitting the 22% mark at the highest dosage after 36 weeks. Notably, the most common side effects were mild to moderate gastrointestinal issues, similar to those experienced with existing weight-loss medications.
Industry analysts are encouraged by these developments. For example, James Quigley from Goldman Sachs labeled amycretin's profile as class-leading, albeit cautioning for more data to fully assess its safety and effectiveness. “For patients with particularly high body mass index ratings, long-term therapy could yield significant benefits,” he explained, indicating optimism about the prospect of starting phase III trials, which could prompt even more positive shifts for the stock.
Interestingly, the reaction to amycretin's successful trials has reverberated across the pharmaceutical sector. Zealand Pharma, which is also developing obesity therapies, saw its stock rise nearly 5% on the same day, contrasting with Eli Lilly’s stock, which dipped by over 2% as concerns about potential competition from Novo Nordisk surfaced.
Aside from injections, Novo Nordisk is exploring oral formulations of amycretin, which earlier trials indicated also lead to weight reductions, with participants losing 13.1% of their body weight over 12 weeks with minimal side effects. This encourages optimism about bringing even more effective weight-loss solutions to the market.
Investors are eager to see how Novo Nordisk will leverage this breakthrough and navigate the competition. With its established success with other drugs like Wegovy and Ozempic, dating back over the last decade with massive market recognition and stock gains, the company seems anticipated to maintain its lead in innovative weight-management therapies.
While it's too early to determine the full impact of amycretin on the broad market for obesity treatments, the initial results signal promising directions for both patient health and investor confidence, marking another potential milestone for Novo Nordisk as they address one of the pressing health issues of obesity around the globe.