Novo Nordisk (NVO.US) Shares Surge to Record High as Wegovy Shows 20% Reduction in Heart Attack and Stroke Risk

Intelligent Finance APP learned that the share price of Novo Nordisk (NVO.US) soared to a record level on Tuesday before the market opened. As of press time, Novo Nordisk's pre-market surged by 11.86%, trading at $180.49. This follows the company’s significant weight-loss drug Wegovy reducing the risk of heart attacks and strokes in a highly anticipated study. The Danish pharmaceutical company stated on Tuesday that obese or overweight patients with a history of cardiovascular disease who took the aforementioned Novo Nordisk drug were 20% less likely to develop cardiovascular diseases compared to those taking a placebo. The safety profile of the drug in the study was consistent with previous trials.

The research results will almost certainly boost the already high demand for Novo Nordisk's weight-loss drugs and may help discussions with insurers regarding reimbursement by documenting health benefits beyond weight loss. The pharmaceutical company stated that it plans to apply for brand expansion in the United States and the European Union this year. Currently, these drugs are too expensive for many patients, costing over $10,000 annually in the U.S.

Celebrities and corporate executives have publicly stated that they are using Novo Nordisk's diabetes and weight-loss drugs, Ozempic and Wegovy, for weight management, bringing Novo Nordisk into the spotlight. Both drugs are injectable and contain the same active ingredient — semaglutide.

Jefferies analysts wrote in a report that Wegovy's sales could reach $14 billion. Demand is so high that the company has been striving to ramp up production, forcing it to temporarily reduce some supplies in the United States. Denmark also reported a shortage of Ozempic this week.

Analysts estimate that weight-loss drugs could become one of the biggest blockbuster pharmaceutical products in history, with Novo Nordisk at the forefront. A competing drug from Eli Lilly and Company (LLY.US) is expected to gain approval later this year.