Novo Nordisk Sinks As Eli Lilly Plots Its Showdown In Obesity
Eli Lilly will run a study comparing Mounjaro and Wegovy to see which is more effective.
Novo Nordisk's (NVO), stock fell Monday after Eli Lilly posted details of their head-to-head comparison study of Mounjaro and Wegovy for obesity treatment.
The study will enroll 700 participants who are obese or overweight but do not have diabetes. The study will compare Lilly's Mounjaro, which is approved for diabetes treatment but not yet in tests for obesity, with Novo's weight-loss injection Wegovy. According to ClinicalTrials.gov, the study is expected to wrap up in early 2025.
Novo Nordisk shares fell by 1.4% in afternoon trading today on the stock exchange, near 170.30.
Lilly shares lost a small amount and were trading at around 382.80.
Novo Nordisk Stock - The Showdown
The head-to-head trial will determine which drug results in a greater change in weight over a period of 72 weeks.
It is a very important question for Novo Nordisk, as both drugs work in slightly different ways. Mounjaro activates two hormones that improve blood sugar levels and slow the rate at which the stomach empties. Wegovy only activates one of two hormones.
Due to the timeframes and types of patients involved, it is difficult to compare two studies on different drugs. Lilly hopes to resolve these differences through a head-tohead study.
Results could impact Novo Nordisk's stock. Mounjaro is expected to overshadow Wegovy, a Novo Nordisk drug. In an earlier trial, Mounjaro patients lost between 16% and 22.5% of body weight. Participants in the final phase of Wegovy lost 7% of body weight over 68-weeks.
Lilly's Mounjaro is a treatment for obesity that has been given a "fast-track" designation. The Food and Drug Administration is yet to approve its use for weight loss.
This could still happen in the coming year. In the meantime, Novo has been working on relaunching Wegovy after a long absence in the U.S.
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The stock of Novo Nordisk is nearing record highs, with a relative strength rating of 96. The stock is now in the top 4% for 12-month performance. MarketSmith.com indicates that shares are approaching a profit zone above the flat-base purchase point of 144.88.
Lilly shares broke recently out of a cup with handle base after topping a entry at 376.41. Lilly's stock has an RS Rating 90 out of a maximum 99.
Novo Nordisk also has an impressive 98 Composite rating, which is a measure of the technical and fundamental metrics for a stock.