Packages of the weight-loss drug Wegovy from the pharmaceutical company Novo Nordisk lie on the sales counter in a Danish pharmacy.
Stefan Trumpf | Picture Alliance | Getty Images
Shares of Danish drugmaker Novo Nordisk soared on Tuesday, after late-stage trial data showed that its obesity drug Wegovy reduced the chance of major cardiovascular events reminiscent of heart attacks or strokes by 20%, compared with a placebo.
The outcomes of the closely watched “SELECT” trial, which exceeded analyst expectations, were seen as a serious boost for the firm’s hopes of moving beyond Wegovy’s image as a “vanity drug.”
Shares of Novo Nordisk rose nearly 16% during mid-morning deals, before paring gains. The stock was last seen trading 14% higher at 12:55 p.m. London time (7:55 a.m. ET).
The double-blind trial began almost five years ago and involved greater than 17,600 adults with established heart problems who were obese or suffered from obesity, but had no prior history of diabetes.
The headline results show that the weekly injection of semaglutide 2.4 mg achieved its primary objection of reducing the chance of cardiovascular events, reminiscent of heart attacks or strokes, by 20% compared with a placebo. Wegovy accommodates 2.4mg of semaglutide.
Investors and analysts had told Reuters that a risk reduction of between 15% to 17% could be interpreted as a positive result for the blockbuster weight reduction drug.
Martin Holst Lange, executive vice chairman for development at Novo Nordisk, said that the outcomes showed that the corporate’s obesity drug “has the potential to vary how obesity is regarded and treated.”
“People living with obesity have an increased risk of heart problems but to this point, there are not any approved weight management medications proven to deliver effective weight management while also reducing the chance of heart attack, stroke or cardiovascular death,” Holst Lange said in an announcement.
“Due to this fact, we’re very excited in regards to the results from SELECT showing that semaglutide 2.4 mg reduces the chance of cardiovascular events.”
The corporate said it expects to file for regulatory approvals of a label indication expansion for Wegovy within the U.S. and European Union this yr.
Emily Field, head of European pharmaceuticals equity research at Barclays, told CNBC last month that the outcomes of Novo Nordisk’s SELECT trial amounted to a vital litmus test for the health industry.
Within the event that the drug was found to have wider-reaching applications, including cardiovascular advantages, Field said that it was more likely that it might be adopted under mainstream healthcare policies.
Public health services “don’t desire to pay for it, if it won’t tackle underlying health conditions,” she said.
The detailed results from the SELECT trial can be presented at a scientific conference later within the yr, Novo Nordisk said, without fully disclosing the timeline.
— CNBC’s Karen Gilchrist contributed to this report.