Shares in Novo Nordisk surged 6.9% Tuesday, after the Wegovy maker secured approval of its GLP-1 pill — a world first.
The U.S. Food and Drug Administration’s approval of Novo Nordisk’s GLP-1 pill gives the Danish pharmaceutical giant a head start over U.S. rival Eli Lilly.
The pill’s starting dose of 1.5 milligrams will be available in pharmacies and via select telehealth providers with savings offers for $149 per month in early January, the firm said.
Cash-paying patients can access it for the same price via President Donald Trump’s direct-to-consumer website, TrumpRx, according to the deal Novo Nordisk struck with his administration last month. Drug pricing has been top of mind this year as the U.S. looks to reduce the costs paid by consumers.
The approval caps a turbulent year for Novo, which has been marked by board drama, supply chain shortages, a bidding war against Pfizer, and criticisms over the execution of its U.S. strategy.
While Eli Lily is expected to launch its own pill soon, Novo’s clinical data looks “fantastic,” Rajesh Kumar, who heads up European life Sciences and healthcare equity research at HSBC, told CNBC’s “Squawk Box Europe” on Tuesday.
Novo’s pill has food and water restrictions, which may make it harder for GPs to prescribe, Kumar said, but noted that its tolerability and efficacy are better than Eli Lilly’s pill. “Novo actually might have an edge, and it will entirely depend on how they execute,” he added.
— CNBC’s Annika Kim Constantino also contributed to this report.
