Novo Nordisk witnessed a significant uptick in its share price during European trading on Friday following the announcement of promising early-stage trial results for its innovative obesity treatment, Amycretin.
The Danish pharmaceutical giant reported that patients administered with Amycretin experienced an average weight loss of 22% over a 36-week period, a stark contrast to the 2% weight gain observed in the placebo group. This development marks a pivotal moment for Novo Nordisk, especially in light of recent setbacks with its CagriSema drug.
The announcement of Amycretin’s efficacy has been a catalyst for renewed investor confidence. Shares of Novo Nordisk surged by as much as 14% in Copenhagen, marking the largest intra-day gain since August 8, 2023. This rebound comes after the stock had nearly halved, declining by 46%, since its peak of approximately 1,000 Danish krone in June 2024.
“We are very encouraged by the subcutaneous phase 1b/2a results for Amycretin in people living with overweight or obesity,” Martin Lange, Executive Vice President for Development at Novo Nordisk, stated. He further emphasized the drug’s potential, noting, “The results seen in the trial support the weight lowering potential of this novel unimolecular GLP-1 and amylin receptor agonist, amycretin, that we have previously seen with the oral formulation.”
Goldman Sachs analyst James Quigley provided deeper insights into Amycretin’s promising results. He suggested that the positive data could alleviate previous concerns stemming from the disappointing outcomes of CagriSema trials last month. Quigley highlighted the potential for Amycretin to deliver even greater weight loss in future studies, especially within populations with higher baseline BMIs.
“Overall, we see the headline weight loss result as potentially best in class,” Quigley commented, maintaining a “Buy” rating on Novo Nordisk with a 12-month price target of DKK 875 (approximately $124). He outlined key risks, including clinical uncertainties, manufacturing scalability, competitive pressures, and potential pricing challenges.
Similarly, Emily Field, an analyst at Barclays, echoed the positive sentiment. “This news finally breaks the tide of negative sentiment for Novo,” Field remarked, adding that the data was “on par with the best” results achieved at this stage for weight loss drugs.
Bloomberg highlighted Amycretin’s unique approach to weight loss, noting that it combines two mechanisms within a single molecule. “Amycretin mimics both GLP-1 — the ingredient that powers Ozempic and Wegovy — and another gut hormone called amylin,” Bloomberg reported. This dual-action strategy positions Amycretin as a potentially superior alternative in the competitive landscape of obesity treatments.
The positive developments surrounding Amycretin come as Novo Nordisk seeks to recover from the setbacks experienced with CagriSema, another weight loss drug that failed to meet analyst expectations last month.
Quigley indicated that there might be an acceleration into Phase 3 trials, contingent on the trial’s design and dosing protocols. This potential acceleration could further enhance Novo Nordisk’s obesity franchise value, extending its market leadership beyond the current patent lifecycle.
In addition to the subcutaneous injection form, Novo Nordisk is also developing Amycretin as an oral pill. Early-stage studies have shown that the pill formulation enabled obese participants to lose an average of 13.1% of their weight after 12 weeks of treatment. These dual formulations—injectable and oral—could provide versatile treatment options, catering to different patient preferences and improving overall adherence.
The company plans to decide on further studies for Amycretin following the data from the subcutaneous version, as stated in their September announcement.
Information for this story was found via Reuters, ZeroHedge, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
