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Novo Nordisk’s NVO oral obesity pill, amycretin, showed faster weight loss than its blockbuster weekly injection, Wegovy (semaglutide), in a phase I study. Not only did NVO’s stock rise 4% in response to the positive news, shares of other drugmakers — Eli Lilly LLY, Viking Therapeutics VKTX and Structure Therapeutics GPCR — whose oral pills for obesity are in mid-to-late-stage development also rose on Wednesday.

Drugmakers are competing fiercely to enter the obesity market due to the huge untapped market opportunity that it represents amid increasing demand. Per research conducted by Goldman Sachs, the obesity market in the United States is expected to reach $130 billion by 2030.

Let’s delve deeper.

NVO’s Amycretin Outperforms Wegovy in Study

Novo Nordisk presented full data from a 12-week phase I study on amycretin at the European Association for the Study of Diabetes meeting in Madrid. The data showed that patients who took the highest dose of amycretin lost around 13.1% of body weight after 12 weeks, while those who took a lower dose of the medicine lost around 10.4%. Wegovy showed a weight loss of around 6% after 12 weeks and around 15% after 68 weeks in clinical studies. In the study, amycretin was associated with some mild-to-moderate side effects, which were in line with those of Novo Nordisk’s semaglutide drugs. Semaglutide is approved as Ozempic pre-filled pen and Rybelsus oral tablet for type II diabetes and as Wegovy for obesity.

In March, Novo Nordisk presented initial data from the same study. Back then the company had said that treatment with amycretin resulted in a 13.1% weight reduction after 12 weeks compared with a decrease of 1.1% in the placebo arm.

The greater efficacy observed in the case of oral amycretin compared with Wegovy was due to the differences in the mechanisms of action of the drugs. Wegovy contains semaglutide, which only targets a hormone called GLP-1 to trigger weight loss. However, amycretin targets GLP-1, as well as a second hormone called amylin. Notably, amylin originates in the pancreas and is responsible for reducing food intake by delaying stomach emptying, as well as decreasing blood glucose levels, leading to the reduction of body weight.

NVO & LLY Rule the Booming Obesity Market

Novo Nordisk and Eli Lilly are the only two companies marketing drugs for treating obesity. Lilly’s drug is called Zepbound and contains an ingredient called tirzepatide. Both Wegovy and Zepbound are GLP-1 products and have witnessed tremendous success due to exceptionally strong demand. However, both Wegovy and Zepbound are given as weekly injections. Novo Nordisk, Lilly and some other drugmakers are making oral medicines for obesity, which can improve patient convenience.

Stocks of Other Obesity Pill Drugmakers Rise

Lilly is developing orforglipron, an oral GLP-1 small molecule, in late-stage studies. Lilly is investing broadly in obesity and has 11 new molecules currently in clinical development, including two late-stage candidates, orforglipron and retatrutide, a GGG tri-agonist. Several phase III data readouts are expected in 2025. Lilly’s stock was up 2.2% on Wednesday.

Viking Therapeutics is developing VK2735 as a subcutaneous injection as well as an oral pill for treating obesity. Viking Therapeutics plans to advance the subcutaneous formulation to late-stage development and start a mid-stage study on the oral formulation before 2024-end. Viking Therapeutics’ stock was up 11.3% on Wednesday.

Structure Therapeutics is also conducting multiple mid-stage studies on its candidate, GSBR-1290, a highly selective oral GLP-1 receptor agonist, for treating healthy overweight or obese individuals. Structure Therapeutics’ stock rose 15.2% on Wednesday.

All these oral candidates for obesity have shown substantial weight loss in clinical studies.

Meanwhile, Pfizer is also developing danuglipron, a GLP-1 receptor agonist, as an oral pill for treating obesity in mid-stage studies. Roche also has a GLP-1-based obesity pill in its pipeline, known as CT-996.

NVO, VKTX and GPCR carry a Zacks Rank #3 (Hold) each, while Lilly sports a Zacks Rank #1 (Strong Buy Buy) currently. You can see the complete list of today’s Zacks #1 Rank stocks here.

Zacks Investment Research

Shares of Novo Nordisk NVO gained 4.2% on Sept. 11 after the company presented encouraging detailed efficacy data from the early-stage study of its new, investigational oral obesity pill, amycretin, at the European Association for the Study of Diabetes meeting in Madrid.

NVO’s Amycretin Shows Efficacy Superior to Wegovy in Study

Novo Nordisk’s oral obesity pill, amycretin, showed faster weight loss than its blockbuster weekly injection for chronic weight management, Wegovy (semaglutide), in the phase I study. Per the data, patients receiving the highest dose of amycretin experienced a 13.1% reduction in body weight after 12 weeks, while those receiving the low dose lost around 10.4%.

In stark contrast, Wegovy only showed a weight loss of around 6% after 12 weeks and around 15% after 68 weeks in clinical studies.

Treatment-related adverse events in the phase I study of amycretin for obesity were mostly mild to moderate in severity, which were in line with those of Novo Nordisk’s semaglutide drugs. Semaglutide is approved as Ozempic pre-filled pen and Rybelsus oral tablet for type II diabetes and as Wegovy for obesity.

We remind the investors that Novo Nordisk had previously presented initial efficacy data from the phase I obesity study on amycretin, at its Capital Markets Day in March 2024. The company had reported that treatment with the candidate resulted in a 13.1% weight reduction after 12 weeks compared with a decrease of 1.1% in the placebo arm.

Year to date, shares of Novo Nordisk have jumped 30.7% compared with the industry’s 24.2% growth.