Danish pharma juggernaut Novo Nordisk has been one of the prime growth cases of the stock market in recent years and their huge success in the obesity drug market could be set for a new boost.
On Thursday’s Capital Markets Day at Novo, the company announced early trial data for the experimental drug Amycretin, which hints at twice as good weight loss results compared to Wegovy – the existing flagship obesity drug from Novo.
Amycretin demonstrated a potential 13% weight loss potential within 12 weeks, whereas Wegovy is limited to 6%. Amycretin and Wegovy belongs to a class of drugs known as GLP-1 agonists, originally designed to treat type 2 diabetes, that have been shown to reduce food cravings and empty the stomach more slowly.
This caused the Novo stock to jump more than 8% on Thursday as investors speculate in the immense global potential of the new obesity drug.
The Novo stock has risen more than 300% since the launch of Wegovy two and a half years ago.
With the recent surge in stock prices, Novo has grown to be the largest company in Europe by market cap, surpassing even French fashion and luxury giant LVMH.
Simultaneously, Novo announced new plans for the expansion of their production capabilities across the globe as the supply of obesity drugs seems to be the main stumbling block for growth and expansion.
Novo Nordisk is also planning a new major research and design facility in Boston, Massachusetts as the hiring and development potential of the local area in the company’s native Denmark is becoming limited as the company continues to grow and expand.
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Novo Nordisk is a leading global healthcare company, founded in 1923 and headquartered in Denmark. Novo Nordisk employs about 63,400 people in 80 countries and markets its products in around 170 countries.