Novo Nordisk's Weight-Loss Pill Gets FDA Nod, Stocks Soar

Novo Nordisk's shares surged by 10% following FDA approval of their weight-loss pill, Wegovy, positioning the Danish firm ahead in the competitive obesity drug market. The pill's approval offers a first-mover advantage over Eli Lilly. Novo also seeks approval in Europe, facing a future challenge from Lilly's upcoming product.

In a decisive move shaking the obesity drug market, Novo Nordisk's shares skyrocketed by 10% on Tuesday after winning U.S. FDA approval for its weight-loss pill, Wegovy. This development grants the Danish company a substantial edge over its major competitor, Eli Lilly, in the dynamic field of obesity treatments.

The approval marks a stroke of fortune for Novo, driving its share price to an impressive 335.60 Danish crowns, setting the stage for the company's biggest one-day gain since August 2023. CEO Mike Doustdar assured stakeholders of sufficient supply to meet demand, a significant lesson learned from prior challenges with the injectable version of Wegovy.

While Wall Street remains optimistic, the competitive landscape won't remain static—analysts anticipate Eli Lilly's orforglipron as a looming contender by 2026. The market anticipates extended consumer access and solving injection hesitancy through affordable pill alternatives, as Novo awaits European approval for Wegovy.

(With inputs from agencies.)