Novo Nordisk's New Weight-Loss Pill Gains Approval, Shakes Up Market

Novo Nordisk's shares surged following U.S. FDA approval for its Wegovy weight-loss pill, giving the company an edge in the obesity drug market. Despite past supply challenges, Novo is ready to launch. Analysts project high sales but question its sustainability against competitors like Eli Lilly's upcoming oral treatments.

Novo Nordisk's recent 8% stock surge stems from the U.S. FDA's approval of its weight-loss pill, Wegovy. This strategic win propels the Danish drug maker to the forefront of the growing obesity drug market, offering a crucial edge over competitor Eli Lilly.

The approval bestows Novo with the coveted first-mover advantage in the oral weight-loss medication space. Despite facing significant supply issues with its injectable Wegovy in the past, CEO Mike Doustdar reassures stakeholders that the company is now well-prepared for the pill's launch.

Analyst Evan Seigerman of BMO Capital warns that Novo's lead might be short-lived, with Eli Lilly's orforglipron pill anticipated by 2026. As both companies vie for market dominance, analysts stress the importance of leveraging effective treatments and broadening affordable access to cater to diverse patient needs.

(With inputs from agencies.)