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Novo Nordisk (NVO.US)’s weight loss drug Wegovy has won a new indication in the EU market, reducing the risk of heart disease by 20%.

AInvestFriday, Jul 26, 2024 4:50 am ET
1min read

Novo Nordisk (NVO.US) said on Thursday that the European Medicines Agency (EMA) has supported its drug Wegovy for reducing the risk of major cardiovascular events, such as heart attacks and strokes, in overweight or obese adults without diabetes.

Wegovy was given a similar approval by the UK regulator just two days ago, while the US Food and Drug Administration (FDA) approved the drug for preventing cardiovascular events in overweight people earlier this year.

Novo Nordisk said it would update Wegovy's label or package information in the EU within about a month.

Data from a late-stage trial showed that Wegovy reduced the risk of major cardiovascular events, such as heart attacks and strokes, by 20% compared with placebo, also supporting the broadening of Wegovy's indications.

Novo Nordisk said the trial recruited 17,604 adults from 41 countries.

The active ingredient of Novo Nordisk's blockbuster diabetes drug Ozempic and its weight-loss drug Wegovy is semaglutide, a GLP-1 agonist.

The surge in demand for GLP-1 agonists has led to supply constraints for Novo Nordisk and rival Lilly (LLY.US), which have been increasing production.

Analysts estimate that sales of these drugs will reach $150bn by the start of 2030.

Lilly and Novo Nordisk are also testing their drugs for other health conditions. Lilly announced on June 30 that it had applied to the US for approval of its weight-loss drug Zepbound for treating obstructive sleep apnea, a common condition associated with obesity, and expects a decision from regulators as early as the end of this year.

Notably, the diabetes and weight-loss drug market is becoming increasingly competitive, with drugmakers including Viking Therapeutics (VKTX.US), Eli Lilly (PFE.US) and Roche (ROG.US) all vying for a piece of the lucrative weight-loss drug market. “Weight-loss drug duopoly” Lilly and Novo Nordisk have recently faced pressure on their share prices.

Novo Nordisk's share price has fallen more than 10% since the start of the month, while Lilly's has fallen more than 9%.

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