Novo Nordisk reported promising mid-stage results for its experimental drug amycretin in diabetes patients on Tuesday, sending its Denmark-listed shares up nearly 4% as investors bet on the company's bid to reclaim leadership in the weight-loss market.
The results come at a pivotal time for the Danish drugmaker, which, a day earlier, reported disappointing results for semaglutide, the active ingredient in its blockbuster obesity drug Wegovy, in closely watched Alzheimer's trials, dashing hopes that GLP-1 drugs could break into a vast new market for the mind-wasting disease.
With semaglutide patents expiring around 2031-2032 and competition heating up, Novo is facing mounting pressure to prove its next wave of obesity treatments can keep pace.
Amycretin, which targets both GLP-1 and amylin hormones, is one of Novo's most closely watched next-generation candidates, seen as a potential "best-in-class" therapy that could follow its CagriSema program and help extend growth beyond semaglutide.
Rival Eli Lilly is surging ahead with its own amylin-based drug, eloralintide, which is advancing to late-stage testing after helping patients shed up to 20% of their weight in a mid-stage trial.
Novo's mid-stage study tested once-weekly subcutaneous and oral amycretin compared to placebo in 448 people with type 2 diabetes inadequately controlled on metformin with or without an SGLT2 inhibitor, a common class of diabetes treatment.
"Though not enough to completely change the narrative for Novo, today's amycretin data in T2D (both SQ and oral) mark a step in the right direction for the company," said BMO Capital analyst Evan Seigerman.
Helps patients lose up to 14.5% of their body weight
Amycretin helped patients with type 2 diabetes lose up to 14.5% of their body weight over 36 weeks with weekly injections, far outperforming a placebo. The oral version delivered weight loss of up to 10.1%.
The drug also showed statistically significant reductions in blood glucose levels, with up to 89.1% of patients achieving HbA1c levels below 7%. Side effects were mostly mild gastrointestinal issues, Novo said. It plans to start late-stage trials in 2026.
"This is the first time amycretin is tested in a type 2 diabetes population. This could represent a breakthrough for people living with type 2 diabetes, obesity, and related comorbidities," Chief Scientific Officer Martin Holst Lange said in a video posted on LinkedIn.
Analysts are also closely watching next-gen obesity treatments, including dual agonists such as amycretin, for their ability to boost weight loss, while sparing lean muscle compared to GLP-1 drugs alone.