Pfizer Surges Following Announcement
A study released on Monday revealed that an oral medication from Pfizer (PFE) produced quicker weight loss compared to the weekly injections of Novo Nordisk ‘s (NVO) diabetes drug Ozempic. This news caused Pfizer shares to increase in value.
A trial conducted by Pfizer included 411 adults suffering from type 2 diabetes. After 16 weeks, the participants who were given a high dose of the company’s drug, danuglipron, lost approximately 10 pounds. This was in comparison to those who received a high dose of Ozempic, Novo’s Phase 3 study saw a similar result of 10 pounds lost over 30 weeks.
The outcome puts a potentially more convenient dual-daily pill up against the well-known Ozempic. According to FactSet, Ozempic made $8.55 billion in sales last year, projected to reach $12.19 billion this year, a 43% growth. Even with the ongoing shortage of semaglutide, the active component behind Ozempic and Wegovy (which treats obesity), the FDA has stated.
At the close of today’s stock market, Pfizer stock experienced a 5.4% increase and settled at 38.75, while Novo Nordisk stock ended nearly unchanged at 170.52.
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Could Pfizer Stock be the next major player in the fight against obesity?
In September, the outcomes of Pfizer’s investigation were initially revealed. Nevertheless, the paper distributed by the Journal of the American Medical Association was the first opportunity to inspect the whole peer-reviewed study. Additionally, Pfizer shares rose in response to the initial report.
Pfizer’s oral medication employs the same procedure as Novo’s Ozempic. Both replicate GLP-1 hormone, or glucagon-like peptide-1. This intestinal hormone communicates a signal to the brain when a person experiences satiety. It also has an influence on blood sugar levels, aiding the pancreas in the release of insulin.
Although Ozempic is not a weight-loss medication, it has become associated with the popular obesity therapy area. Eli Lilly (LLY) is in the process of trying out its diabetes drug, Mounjaro, on patients suffering with obesity. Additionally, Amgen (AMGN) and Viking Therapeutics (VKTX) are both operating in this field.
Novo Nordisk is not taking a break from their accomplishments. On Monday, the pharmaceutical firm from Denmark reported that taking semaglutide orally enabled people who suffer from obesity to shed up to 17.4% of their body weight during the course of 68 weeks. Furthermore, close to 90% of those who ingested semaglutide lost no less than 5% of their overall weight over the same time frame.
On Monday, the stock of Pfizer gained ground, nearing its 50-day moving average, while Novo’s shares declined.
Novo Nordisk is still far above its 50-day line. It also has an outstanding Relative Strength Rating of 96, placing it among the top 4% of stocks in terms of performance in the past 12 months.
