Investing.com -- Novo Nordisk (NYSE:NVO) shares sank more than 7% in Copenhagen after Eli Lilly (NYSE:LLY) released promising trial results for its experimental obesity pill, orforglipron, which showed weight loss and blood sugar control comparable to injectable treatments like Ozempic.
The selloff followed a Thursday update from Lilly that sent its stock 14.3% higher.
The race to develop a convenient, needle-free weight-loss treatment is heating up as both companies look to extend their dominance in the fast-growing GLP-1 drug market. Lilly’s new data adds pressure on Novo, which has already seen its market value fall by about a third since the start of the year.
In the late-stage trial, Lilly’s daily pill helped patients with Type 2 diabetes reduce blood sugar and lose weight, showing a safety profile similar to that of current injections.
The highest dose led to an average 7.9% weight loss—about 16 pounds—after 40 weeks. Notably, patients did not hit a weight-loss plateau by the end of the study, suggesting further reductions might be possible.
Side effects prompted about 8% of patients on the highest dose to discontinue treatment, with most symptoms being gastrointestinal and ranging from mild to moderate in severity. Nausea, vomiting, and diarrhea were the most commonly reported issues.
While the weight-loss results met expectations, the pill missed the mark on a key diabetes measure. It lowered hemoglobin A1c levels by 1.3% to 1.6%, from a starting point of 8%.
That improvement was below some analysts’ expectations, which had been closer to 1.8% to 2.1%, in line with the performance of Novo’s Ozempic.
Weight-loss injections from Novo Nordisk and Eli Lilly have already brought in billions in revenue. While other companies like Pfizer (NYSE:PFE) have faced hurdles, analysts believe that developing effective pills will be key to unlocking the full potential of what could become a $130 billion market by the end of the decade.
