Shares of Danish drugmaker Novo Nordisk (NYSE:NVO) soared on Tuesday, after late-stage trial data showed that its obesity drug Wegovy reduced the risk of major cardiovascular events such as heart attacks or strokes by 20%, compared with a placebo.
The results of the closely watched “SELECT” trial, which exceeded expectations, were seen as a major boost for the firm’s hopes of moving beyond Wegovy’s image as a “vanity drug.”
Shares of Novo Nordisk rose nearly 16% during mid-morning deals, before paring gains. The stock opened Tuesday trading in New York up $26.47, or 16.4%, to $187.82.
The double-blind trial began almost five years ago and involved more than 17,600 adults with established cardiovascular disease who were overweight or suffered from obesity, but had no prior history of diabetes.
The headline results show that the weekly injection of semaglutide 2.4 mg achieved its primary objection of reducing the risk of cardiovascular events, such as heart attacks or strokes, by 20% compared with a placebo. Wegovy contains 2.4 mg of semaglutide.
Investors and analysts had told Reuters that a risk reduction of between 15% to 17% would be interpreted as a positive result for the blockbuster weight loss drug. The company said it expects to file for regulatory approvals of a label indication expansion for Wegovy in the U.S. and European Union this year.
