Dec 23 (Reuters) – Novo Nordisk’s Frankfurt-listed shares opened nearly 10% higher in early trading on Tuesday after the U.S. Food and Drug Administration approved its weight-loss pill.
The move gives the Danish drugmaker an edge in the race to market a potent oral weight-loss medication as it seeks to regain ground lost to rival Eli Lilly.
Novo Nordisk’s share price has been in decline as it has lost market share to compound manufacturers and Lilly, BMO Capital analyst Evan Seigerman said in a note.
The company will now benefit from first-mover advantage and capture patients with a preference for the convenience and comfort provided by an oral drug, Seigerman said, though that advantage could be short-lived with Lilly’s oral drug orforglipron expected to be approved in 2026.
Novo Nordisk had a first-to-market advantage with injectable weight-loss drugs but initially struggled to meet the explosive demand. Eli Lilly took advantage to forge ahead with rival Zepbound, which now leads the way in weekly U.S. prescriptions.
Shares in Novo Nordisk have lost more than 50% of their value this year.
(Reporting by Danilo Masoni, Stine Jacobsen and Maggie FickEditing by David Goodman)
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