Novo Nordisk, renowned for its weight-loss drugs Wegovy and Ozempic, has outstripped Tesla in market valuation, propelled by promising early trial data for amycretin, its latest obesity medication. So, what is novo nordisk and what do they do, let’s find out more about them.
The beginning
Novo Nordisk, a Danish pharmaceutical company, was founded in the 1920s with the merger of two Danish companies, Nordisk Insulinlaboratorium and Novo Terapeutisk Laboratorium. The company’s heritage began with the discovery of insulin in 1921, and its founders, Danish Nobel laureate August Krogh and his wife Marie, a doctor living with diabetes, were driven by the desire to produce this life-saving medicine in Denmark.
The company’s most famous products are primarily focused on diabetes and weight-loss treatments. These include:
- Ozempic: Ozempic is a once-weekly injectable semaglutide that acts as a GLP-1 receptor agonist, selectively binding to and activating the GLP-1 receptor, the target for native GLP-1. It lowers fasting and postprandial blood glucose by stimulating insulin secretion in a glucose-dependent manner.
- Wegovy: Wegovy is a GLP-1 analogue with 94% sequence homology to human GLP-1. It is indicated as an adjunct to a reduced calorie diet and increased physical activity for chronic weight management in adults living with obesity or overweight in the presence of at least one weight-related comorbid condition.
- NovoRapid: NovoRapid is a rapid-acting insulin analogue that mimics the physiological insulin response to meals. It is used to control blood glucose levels in patients with type 1 diabetes and type 2 diabetes.
- Victoza: Victoza is a once-daily injectable GLP-1 receptor agonist used for the treatment of type 2 diabetes.
- Tresiba: Tresiba is a long-acting insulin analogue that provides a stable, continuous insulin supply for up to 24 hours, helping to control blood glucose levels in patients with type 1 diabetes and type 2 diabetes.
These products work by stimulating the body’s own insulin secretion or mimicking the GLP-1 hormone that targets areas of the brain involved in appetite regulation, thereby helping to manage blood glucose levels and promote weight loss. Novo Nordisk has been a global market leader in the GLP-1 segment for type 2 diabetes, with a 52.7% value market share in 2021. The company’s success is attributed to its focus on research and development, with a strong pipeline of new experimental drugs and strategic acquisitions, such as the acquisition of Prothena’s ATTR amyloidosis program and Dicerna Pharmaceuticals’ RNAi platform.
Surge in Market Value
Novo Nordisk’s shares soared over 8% post-announcement of positive Phase I trial results for amycretin, reaching a market value of $566 billion. The remarkable weight loss of 13.1% in participants after 12 weeks, compared to Wegovy’s 6%, fueled investor optimism.
Wegovy and Ozempic Success
Originally designed for type 2 diabetes, Wegovy and Ozempic’s effectiveness in reducing food cravings and inducing weight loss has driven Novo Nordisk’s rapid growth.Additionally, Wegovy’s demonstrated cardiovascular benefits have steered Novo Nordisk towards cardiovascular disease treatments, further diversifying its portfolio.
Market Performance Milestones
Novo Nordisk’s shares have tripled since Wegovy’s U.S. launch in June 2021, making it Europe’s most valuable listed company, surpassing LVMH, and ranking 12th globally. Moreover, Nearly half of Novo Nordisk’s valuation is attributed to its robust pipeline, including amycretin, reflecting strong investor confidence in future prospects.
Contrast with Tesla
Tesla’s market cap declined to $581 billion post-disappointing earnings, with a 12% stock drop signaling subdued growth forecasts.
Novo Nordisk’s ascendancy underscores the transformative potential of amycretin and its innovative approaches to tackling obesity and related conditions, contrasting with Tesla’s recent market challenges.