Novo Nordisk used to dominate the global market for weight loss drugs. But now, it is experiencing a radical transformation.
The Danish Pharmaceutical giant, Lars Fruergaard Jorgensen announced on Friday that it was replacing its long-serving CEO, Lars Fruergaard Jorgensen. This is due to mounting competition and the sharp decline in the stock price.
Novo shares fell 50% in the last year. This is a shocking reversal of fortunes for the company that makes Wegovy, and Ozempic – two of the best known names when it comes to obesity and diabetes treatment.
The weight loss drug market is expected to grow significantly over the next 10 years, and could reach $100 billion in global sales.
The departure of Jorgensen signals a deeper crisis in the rapidly evolving market where GLP-1 medications, once hailed as miracle drugs, are now under increased scrutiny and competition from policymakers and insurers.
Eli Lilly’s ascent reshapes the market leader
Eli Lilly from the US has been the most potent competitor, with its GLP-1 injectable Zepbound steadily gaining market share over Novo’s Wegovy.
Lilly’s recent clinical data have only strengthened its position.
Orforglipron was the experimental drug used by this company in late stage trials. It helped diabetic patients to lose almost 8% of body weight within 40 weeks, beating Ozempic in a cohort with similar characteristics.
Lilly boasts of retatrutide as well, an injection given weekly that resulted in 24.2% loss of weight in a trial at mid-stage, which is one the best results to date in this sector.
Orforglipron is expected to be approved by the end of this year. The company continues to make aggressive investments, such as a deal recently signed with Chinese biotech Laekna for a drug that preserves muscle mass in obese people.
Next-generation drugs are catching up to Novo
Novo Nordisk’s new treatment options are a key to regaining lost ground.
The company is working on developing the drug amycretin, both in pill form and as an injectable.
The early trial results suggest that weight loss is possible, as the injection version helped patients to lose 22% their body weight within 36 weeks.
CagriSema is another product that the company has been pushing, despite disappointing late-stage results and falling short of benchmarks set by internal standards.
Novo aims to have CagriSema approved by the regulatory authorities in 2026.
The company has expanded its product pipeline by partnering with other companies, such as a licensing deal worth $2 billion for an obesity-targeting drug that targets triple hormones.
Source: The Economist HTML0
Roche and Amgen join in the fun
Lilly and Novo have not been left out of the competition. The multi-billion dollar market potential is luring a host of biotech and pharmaceutical firms into the obesity arena.
Pfizer has recently withdrew from a clinical trial of danuglipron (its oral GLP-1 Candidate) due to safety concerns.
Others are advancing. Roche made a big wager by acquiring Zealand Pharma’s petrelintide, and Carmot Therapeutics’ CT-388 – both GLP-1 based drugs – for $8 billion.
The early data for Carmot’s other candidate is also promising.
Amgen MariTide is beginning late stage studies in mid-year. The drug, which was tested at a middle-stage and led to a 20% loss of weight, has been proving to be effective.
Analysts point out that although the side effects of the drug may be greater than those of its competitors, it is still a top contender due to its effectiveness.
Merck, AstraZeneca and smaller companies are also vying for a piece of the pie
Pharma giants who have traditionally avoided the obesity market are now looking to get a piece of it.
Merck signed a licensing agreement in December for Hansoh Pharma’s GLP-1 tablet.
AstraZeneca’s licensed candidate AZD5004 cleared the early hurdles in safety and is currently undergoing mid-stage clinical trials.
Even smaller firms have potential. Altimmune’s pemvidutide showed a weight loss of 15.6% in average during trials. However, there were some gastrointestinal effects.
In a preliminary study, Zealand Pharma’s Petrelintide showed an average 8.6% weight loss.
Structure Therapeutics has had modest success in its GPCR oral candidate, which delivered a 6.2% loss of weight over 12 weeks.
The convenience of oral drugs is attractive for both patients and investors.
Access to healthcare remains a problem
Access to these medications remains an issue despite scientific advances.
Many employers are struggling to cover rising healthcare costs and have excluded weight loss drugs from their plans.
Medicare does not cover obesity treatment in the majority of cases.
The Trump administration recently ruled that a plan by Biden to increase coverage would be rescinded, forcing most patients to cover the costs themselves. The average monthly cost of health insurance is $500. This means that affordability for many people remains an issue.
As new information becomes available, this post may change.
