Novo Nordisk's New Obesity Drug Surpasses Tesla in Market Value
Well-known for its innovations in obesity and type 2 diabetes treatments with drugs like Wegovy and Ozempic, Novo Nordisk has now introduced a potential breakthrough in weight loss medication, named amykretin. Reuters reports that the early trial results of this new product are highly encouraging.
3:27 PM EST, March 9, 2024
The initial findings reveal that participants lost an average of 13.1 percent of their body weight over three months. In comparison, their previous drug, Wegovy, enabled a 6 percent weight loss over the same period and a 15 percent reduction over 68 weeks.
Overtaking Tesla
The investor response to these results was overwhelmingly positive. Novo Nordisk's stock prices jumped by 8 percent, propelling the company past Tesla and Visa with a market capitalization of $566 billion, Reuters calculated. The company also advanced from the 14th to the 12th spot in the global ranking of the most valuable companies.
"Novo made it clear that amykretin would likely be the cornerstone of the company's rapid growth," noted Guggenheim analyst Seamus Fernandez during a discussion with Reuters.
The Future of Novo Nordisk
Analysts from Berenberg have pointed out that about half of Novo Nordisk's current market valuation is driven by the enthusiasm surrounding its ongoing development of new experimental drugs.
