Novo Nordisk rises as early weight-loss pill data impresses Street

Shares of Novo Nordisk (NVO) are on the rise on Wednesday following the drugmaker’s presentation of early-stage trial results for its experimental weight-loss pill, which seems to have impressed Wall Street analysts. BMO Capital says the full data presented for the company’s once-daily oral Amycretin was supportive of the assets’ differentiated profile and investor enthusiasm for the top-line data, adding that safety also appears competitive with Eli Lilly’s (LLY) orforglipron.

WEIGHT-LOSS PILL DATA: Presenting at the European Association for the Study of Diabetes meeting in Madrid, Novo Nordisk said its Amycretin weight-loss pill had an 87.5% rate of gastrointestinal side effects at its highest dose in an early-stage study. Further, the pill had a 75% rate of nausea, 56% rate of vomiting and 25% rate of constipation at a daily dose of 2 x 50 mg. At a lower daily dose of 50 mg, the pill had 31% rate of nausea, 38% rate of vomiting and 13% rate of constipation. Phase 1 data demonstrates placebo-adjusted mean change in body weight of 9.2% at the 50mg dose and 11.9% at the two-times 50mg dose at 12 weeks. 

DIFFERENTIATED PROFILE: BMO Capital notes that full data presented for Novo’s once-daily oral Amycretin was supportive of the assets’ differentiated profile and investor enthusiasm for the top-line data. Previously disclosed 13.1% weight loss at the two-times 50mg dose and 10.4% weight loss at 50mgs at 12 weeks is competitive with what the firm has seen from other orals. Safety shared also appears competitive with orforglipron. Still, given Amycretin is a peptide, BMO would like to hear more from Novo on manufacturing, a potential point of differentiation for the small molecule assets.

The Phase 1 data highlights potentially best-in-class oral efficacy from Novo’s Amycretin, demonstrating placebo-adjusted mean change in body weight of 9.2% at the 50mg dose and 11.9% at the 2x 50mg dose at 12 weeks, the firm notes. Improvement in weight loss beyond what has been seen from GLP-1 mono agonists is potentially driven by synergistic effect from the targeting of both GLP-1 and Amylin. GLP-1 targeting benefits insulin secretion and biosynthesis and Amylin potentially benefits Leptin sensitivity with both likely reducing appetite and working to maintain normal levels of metabolic rate.

BMO further points out that safety at the 50mg dose of Amycretin also appeared comparable to what has been seen from orforglipron, though it notes these are early data in relatively small patient populations. While Novo’s new Amycretin data appears promising and competitive, the firm reiterates the large opportunity of the obesity market leaves plenty of room for multiple players. BMO has an Outperform rating on Novo Nordisk with a price target of $160.

PRICE ACTION: In morning trading, shares of Novo Nordisk have gained almost 1.5% to $131.35.