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(Sharecast News) - Shares in Denmark's Novo Nordisk surged on Tuesday after the US Food and Drug Administration approved the pill form of its Wegovy weight loss drug.
The Wegovy pill - the first oral glucagon-like peptide-1 (GLP-1) receptor agonist therapy approved for weight management - is expected to be launched in the US in early January.
Chief executive Mike Doustdar said: "The pill is here. With today's approval of the Wegovy pill, patients will have a convenient, once-daily pill that can help them lose as much weight as the original Wegovy injection.
"As the first oral GLP-1 treatment for people living with overweight or obesity, the Wegovy pill provides patients with a new, convenient treatment option that can help patients start or continue their weight loss journey. No other current oral GLP-1 treatment can match the weight loss delivered by the Wegovy pill, and we are very excited for what this will mean for patients in the US."
Novo Nordisk said it submitted oral semaglutide 25 mg once-daily for obesity to the European Medicines Agency (EMA) and other regulatory authorities in the second half of this year.
At 0930 GMT, the shares were up 7.5% at DKK326.15.
Russ Mould, investment director at AJ Bell, said: "The weight-loss drug market started out as a fairly even race between Eli Lilly and Novo Nordisk, but in recent times Lilly has streaked ahead of its Danish counterpart as Novo has been beset by disappointing trial results and operational misfires.
"So news that the US drug regulator has approved a daily pill version of Novo's Wegovy treatment has given the company a head start in the next big contest of bringing an oral obesity treatment to market.
"This is a significant breakthrough given the reluctance of some people to use the existing injectable option and it could help the company win back market share from Lilly. Novo expects to be ready for a full launch in January.
"It won't have this market to itself for long, as Eli Lilly's own pill looks set to receive regulatory approval in the near future after positive results from its latest trial. However, this is a boost for new Novo boss Mike Doustdar as he looks to revive the company's fortunes."
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