Novo Nordisk, a Danish drugmaker, announced on Tuesday that its obesity drug Wegovy has shown clear medical benefits in addition to weight loss. The results of a large late-stage study called SELECT exceeded expectations, revealing that the weekly injection reduced the risk of major cardiovascular events, such as strokes, by 20% in overweight or obese individuals with a history of heart disease. This is significantly better than the 15-17% reduction that investors and analysts had anticipated.
The SELECT trial involved 17,500 patients aged 45 years or older with no prior history of diabetes. The study aimed to determine if the weekly injection of Wegovy had medical benefits. The positive results have boosted Novo Nordisk’s hopes of expanding the drug’s use beyond its current perception as a lifestyle drug.
Following the announcement, Novo Nordisk’s shares reached record highs, surging more than 13%. The company is now Europe’s second-most valuable listed company after LVMH. The positive trial results may also encourage insurers in the United States and cost-conscious health authorities in Europe to cover the cost of Wegovy for a broader range of patients.
Wegovy, which was launched in the United States in June 2021, has already transformed the weight-loss market. The drug makes patients feel full for longer and, when combined with changes to diet and exercise, leads to an average weight loss of around 15%. It belongs to a class of drugs known as GLP-1 agonists, originally developed to treat type 2 diabetes.
According to the World Health Organization, there are over 650 million obese adults worldwide, more than three times the number in 1975. Additionally, approximately 1.3 billion individuals are overweight, exacerbating conditions such as heart disease and diabetes.
The better-than-expected results of the SELECT trial are expected to cause a stir among doctors who prescribe anti-obesity drugs. It may also increase the likelihood of payers in certain markets engaging in dialogue regarding subsidies for Novo Nordisk. Currently, Wegovy is available in Norway, Denmark, and Germany. The Danish and Norwegian public health authorities have stated that they may reconsider covering the drug once the SELECT results are in.
Barclays analysts estimate that a positive outcome from the study could increase the uptake of Wegovy by a quarter by 2030 if it receives approval for expanded use. However, the company is already struggling to meet the skyrocketing demand in the United States. In May, Novo Nordisk announced that it would halve the supply of starter doses to the U.S. market to ensure supplies for existing patients.
Novo Nordisk expects to file for regulatory approvals of a label indication expansion for the weekly injection in the United States and European Union later this year. The detailed results from the trial will be presented at a scientific conference in 2023.
How might the positive trial results for Wegovy impact the accessibility of the drug for patients in healthcare systems around the world?
Lthcare systems around the world to cover Wegovy, potentially making it more accessible to patients.
Wegovy, also known as semaglutide, is a glucagon-like peptide-1 receptor agonist that was originally developed as a treatment for type 2 diabetes. However, during clinical trials, researchers discovered that it also had a significant impact on weight loss.
In the SELECT trial, participants who received the weekly injection of Wegovy not only experienced substantial weight loss, but they also had a reduced risk of major cardiovascular events. This is a significant finding, as obesity is a major risk factor for heart disease, strokes, and other cardiovascular complications.
The positive results from the trial have exceeded expectations, surprising both investors and analysts. The 20% reduction in the risk of major cardiovascular events is higher than anticipated and could have significant implications for the wider use of Wegovy.
Novo Nordisk, a leading pharmaceutical company in Denmark, sees the potential to expand Wegovy’s use beyond its current perception as a lifestyle drug. With these promising results, the company hopes to gain approval for the drug’s use in treating obesity-related cardiovascular conditions.
The announcement of the positive trial results has had a significant impact on Novo Nordisk’s stock market performance. Following the news, the company’s shares reached record highs, surging over 13%. This increase in stock value has propelled Novo Nordisk to become Europe’s second most valuable listed company, following LVMH.
The encouraging trial results may also have broader implications for healthcare systems and insurers. The reduced risk of major cardiovascular events demonstrated by Wegovy could lead to increased coverage by insurers, making the drug more accessible to those who could benefit from it. This could have a positive impact on healthcare systems by potentially reducing the financial burden of obesity-related cardiovascular conditions.
Overall, the positive results from the SELECT trial have provided a significant boost for Novo Nordisk and Wegovy. With the potential for expanded use and increased coverage, this obesity drug has the potential to make a substantial impact on both weight loss and cardiovascular health.
