Yes, I know this is my third post (plus video) on diabetes/weight-loss drug leader Novo Nordisk (NVO) in three weeks. But the company keeps pumping out research updates that keep powering the stock higher. Think of this as a momentum stock where the momentum comes from the R&D pipeline and not moves in the share price. (The last post was https://jubakam.com/another-reason-t…-success-for-glp/)
Today, the company reported early results for a next-generation oral weight loss drug called amycretin, showing a 13.1% weight loss after 12 weeks. That’s a bigger weight-loss than either Novo Nordisk’s own Wegovy or Eli Lilly’s (LLY) competing drug Zepbound.
Shares of Novo Nordisk were up 8.9% today to $135.85. I added them to my Jubak’s Picks Portfolio on February 20. The position is up 11.91% since then.
And amycretin represents something of a holy grail in weight-loss drugs in the search for a pill to replace the current injected drugs. Viking Therapeutics (VKTX) soared last week on positive results for an injectable drug that required less frequent injections. (Shares of Viking Therapeutic took the “pill news” like a punch to the gut, dropping 18.84% today. I expect that the shares will recover much of that ground over the next few trading sessions as investors realize that the Novo Nordisk drug is only in vey early trials, the Viking is working on its own oral version of its drug, and that the weight-loss drug market is big enough for multiple competitive products.)
Amycretin has now completed an early Phase 1 test. Wegovy achieved 14.9% average weight reduction in STEP-1, a 68-week clinical trial. Another study called OASIS showed 15% weight loss after 68 weeks of treatment, with 34% seeing a 20% drop in their weight. Compare that to the 13.1% weight loss from amycretin after 13 weeks.
Novo Nordisk boosted R&D spending by 35% in 2023 so I doubt this will be the last news out of the company.
