Shares of Novo Nordisk (NVO) are up 7% on news that the European pharmaceutical company has secured U.S. regulatory approval for its new weight-loss pill.
The U.S. Food and Drug Administration’s (FDA) approval of Novo Nordisk’s obesity pill is a world first and gives the Danish pharmaceutical giant a head start over rival Eli Lilly (LLY).
Novo Nordisk’s pill will be available in pharmacies and via telehealth providers in early January, about six months before Eli Lilly’s competing pill is expected to be approved by the FDA.
The weight-loss pill approval ends a turbulent year for Novo Nordisk, which has been marked by executive changes, supply shortages, and criticisms over its execution in the U.S. market.
Weight-loss pills are expected to be a gamechanger for the pharmaceutical industry and bring in billions of annual revenues.
Currently, weight-loss medications are taken by injections, which are unpopular with many consumers.
Novo Nordisk’s new weight-loss medication, called the Wegovy pill, comes with food and water restrictions. But its efficacy was better than Eli Lilly’s pill in clinical trial comparisons.
NVO stock has declined 45% this year to trade at $48.10 U.S. per share.
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