After the stock price halved, does Novo Nordisk have a chance for a comeback? Experimental data shows that the new drug's weight loss effect surpasses Zepbound

Danish pharmaceutical giant Novo Nordisk's newly developed injectable obesity drug amycretin has shown weight loss potential that surpasses current market-leading products in early trials, providing the company with new hope in its fierce competition with Eli Lilly.

According to trial data released by The Lancet medical journal on Saturday, participants receiving the highest dose of amycretin injections lost an average of 24.3%, while the placebo group lost only 1.1%. This result exceeds that of the most successful weight loss drugs currently on the market—Eli Lilly's Zepbound (average weight loss of 22.5%) and Novo's Wegovy (average weight loss of 15%).

As the trial results were announced, Novo Nordisk is working to convince investors that its drug development pipeline can compete with Eli Lilly. The company's stock price has fallen nearly 50% over the past year, with investors concerned that it is losing its lead over Eli Lilly's Zepbound and Mounjaro.

Dual Administration Method Shows Weight Loss Potential

Amycretin combines the active ingredients semaglutide from Novo's Wegovy and Ozempic with the satiety hormone amylin. In addition to the injectable form, the oral version of the drug has also shown positive effects in another early trial.

According to data released by The Lancet, participants in the highest dose group of the oral version of amycretin lost an average of 13.1%, while the placebo group lost 1.2%. Notably, in a 12-week Phase 1 trial, participants did not experience a plateau in weight loss, suggesting that greater weight loss may be achievable in longer trials or real-world applications.

Martin Lange, Executive Vice President of Development at Novo Nordisk, stated that he believes the oral version of the drug could achieve similar weight loss effects as the injectable version if patients take it for a longer duration. BMO Capital Markets analyst Evan Seigerman believes amycretin looks "promising."

Key Breakthrough Amid Intensifying Pipeline Competition

This positive result is crucial for Novo Nordisk. The company's previous obesity drug CagriSema had disappointing trial results, leading to a significant drop in stock price at the end of last year. More detailed data on CagriSema will be released on Sunday at the American Diabetes Association meeting.

Meanwhile, analysts are optimistic about Eli Lilly's oral obesity drug orforglipron. According to a Phase 2 study released in 2023, the drug achieved an average weight loss of 14.7% at the highest dose over 36 weeks. Recent results from a Phase 3 trial targeting diabetic patients have driven Eli Lilly's stock price up by more than 15%.

Novo Nordisk has submitted an approval application for the oral version of Wegovy to U.S. drug regulators. This application is based on trial data showing that patients lost an average of 16.6% over 64 weeks The company announced last month that it will seek a new CEO to replace Lars Fruergaard Jørgensen