Novo Nordisk A/S (ADR) (NYSE:NVO) diabetes candidate drug, Semaglutide, is on the cusp of regulatory approval after generating top line results in a key late-stage trial. The drug successfully reduced blood glucose levels in patients in a 40-week trial setting the stage for it to become a standard care therapy for the treatment of type 2 diabetes.
Semaglutide Top Line Results
Results from the 40-week study also indicate that Semaglutide lowered body weight in 1,200 patients in addition to reducing glucose levels. The number of patients who experienced adverse events of diabetic retinopathy was also low when compared to other treatment options.
Just like Eli Lilly’s Dulaglutide, Semaglutide operates by imitating an intestinal hormone that stimulates the production and absorption of insulin. This explains why Eli Lily tanked in the market on Novo Nordisk posting the impressive clinical results.
The once weekly Dulaglutide marketed as Trulicity generated sales of $480 million in the second quarter accounting for nearly half or Eli Lily product sales. Approval of Semaglutide given the positive clinical trial results could significantly reduce the amount of sales that Eli Lily generates with its drug.
Semaglutide vs. Dulaglutide
“While we project that Lilly will retain its leadership position in the once-weekly segment, Novo has made headway with its oral formulation that could potentially shift the market dynamics in its favor over the longer term,” Barclay’s analysts said.
Novo Nordisk has applied for marketing applications in seven jurisdictions as it looks to take on Eli Lilly and Co (NYSE:LLY) on the treatment of type 2 diabetes. Jefferies analyst Heffrey Holford expects price wars to take center stage between Semaglutide and Dulaglutide, given that the two drugs offer significant benefits.
Topline clinical trials for Semaglutide adds to a wave of positive news that has befell Novo Nordisk in the recent past. The company is fresh from posting better than expected second quarter results in addition to being well positioned to generate insulin drugs.
Shares of Novo Nordisk were up by 1.99% in Wednesday’s trading session to end the day at $46.41 a share.
