Novo Nordisk’s (NVO) stock was up more than 12% in pre-market trading Friday on news the company’s latest weight loss product delivered favorable results.
The new drug, amycretin, similar to the company’s blockbuster weight loss and diabetes drugs Wegovy and Ozempic, provided weight loss up to 22% in early stage clinical trials.
The company tested the once-weekly injection on 125 people up to 36 weeks with incremental increases in dosage. The highest dose, 20 mg, provided the highest weight loss. Novo is also testing a pill with the same formula, which had disappointing results in early stage trials late last year.
“The new findings should help boost shares considerably given months of underperformance amid a growing view that the Company’s obesity pipeline was drying up. Although the oral version of this mechanism failed to impress investors late last year, this sub-cu version could wind up as one of the leading therapies for obesity if efficacy and safety results are consistent in later stage trials which should commence soon,” wrote Mizuho’s healthcare expert Jared Holz in a note to clients Friday.
Amycretin could give Novo a buzzy product in an newly competitive obesity market. It works similarly to existing GLP-1 products, by mimicking a hormone in the body that provides a satiated feeling and curbs hunger, but adds a different hormone in the pancreas.
Similar to existing products, side effects included mild to moderate “gastrointestinal” issues — like vomiting and nausea.
The company disappointed on a previous product, CagriSema, which delivered similar results but is partly based on semaglutide, the same active ingredient as Ozempic and Wegovy.
Novo is now planning further trials in adults with obesity. The early stage trial results, while promising, need to be further proved in a larger Phase 3 trial.
“We are very encouraged by the subcutaneous phase 1b/2a results for amycretin in people living with overweight or obesity,” said Martin Lange, executive vice president for development at Novo Nordisk, in a statement Friday.
“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,” Lange said.
Anjalee Khemlani is the senior health reporter at Yahoo Finance, covering all things pharma, insurance, care services, digital health, PBMs, and health policy and politics. That includes GLP-1s, of course. Follow Anjalee on social media platforms X, LinkedIn, and Bluesky @AnjKhem.