Novo valuation surpasses Tesla on experimental obesity drug data

Subject: Science and tech

Section: Health

Context:

Novo Nordisk’s market valuation has surpassed Tesla and Visa after announcing positive early trial data for a new obesity drug; shares rose over 8% to record highs.

More on news:

Shares surged more than 8% to record highs, shooting Novo Nordisk up in global rankings to the 12th most valuable company from 14 previously.

About the drug:

Wegovy belongs to a class of drugs known as GLP-1 agonists, originally designed to treat type 2 diabetes, that have been shown to reduce food cravings and empty the stomach more slowly.
Wegovy was the first of a new group of highly effective weight-loss drugs to be launched.
Novo and Lilly are so far the leaders in the obesity drug market, forecast by analysts to be worth $100 billion by 2030.
Wegovy also had a clear cardiovascular benefit, boosting efforts by the company to move Wegovy beyond its image as a lifestyle drug.

Semaglutide

Semaglutide injection is in a class of medications called incretin mimetics. It works by helping the pancreas to release the right amount of insulin when blood sugar levels are high. Insulin helps move sugar from the blood into other body tissues where it is used for energy.
Novo Nordisk is the sole patent holder of semaglutide, the active ingredient in both Wegovy and Novo’s diabetes drug Ozempic, which are not yet approved for sale in India
Wegovy, Ozempic and Eli Lilly’s Mounjaro and Zepbound belong to a class of therapies known as GLP-1 receptor agonists originally developed to control blood sugar in patients with type 2 diabetes. But they also slow digestion, helping patients feel full longer.
Indian law allows drugs approved in foreign countries to be imported and sold in the country after obtaining an import license from the drug regulator by the original drug manufacturer’s partner in India.
Novo aims to officially launch Wegovy in India in 2026 after securing regulatory approvals
Certain provisions of the law also allow drugs that have not been formally approved by the Indian drug regulator to be imported for individual use, provided patients make an appeal with valid prescriptions and proof of identity.