Novo shares tumble after latest setback for high-profile obesity drug

Novo has put its obesity franchise in the spotlight, promising in March to triple sales of the weight-loss drug by 2025.But the company faltered after receiving Wegovy’s approval in June 2021, as initial demand outstripped Novo’s manufacturing capacity.
The company had promised that production issues would be resolved in the second half of the year.On Wednesday, Novo said it expected all dose strengths to be available in the U.S. “by the end of 2022,” a revision that analysts flagged as yet another delay.
Analysts also pointed to disappointing news from Wegovy’s Phase 3 study, known as SELECT.The trial was designed to measure whether Wegovy could reduce the risk of cardiovascular events in overweight or obese patients.Investors had hoped that an interim analysis of the data by an independent monitoring committee would show such a strong impact that the trial would be stopped early.
Instead, Novo reported that the board decided that the study should continue.It is scheduled to be completed by mid-2023.Jefferies analyst Peter Welford wrote in a note to investors Wednesday that the board’s decision indicated that the reduction in cardiovascular risk associated with the treatment “is not better than the 17% target.”
Investor jitters over Wegovy were made worse by a strong start to rival Eli Lilly’s Mounjaro, which was approved in May to treat diabetes and showed in tests that it could significantly reduce weight.Eli Lilly is further investigating the drug as a weight loss therapy.
According to SVB Securities analyst David Risinger, doctors prescribing Mounjaro appeared to be “much higher” than competing drugs, including Wegovy, in the eight weeks before launch.Eli Lilly said Thursday that sales of the drug were $16 million through June.
Since 2015, more than a quarter of drugs approved by the FDA’s Office of Principal Review have been cancer drugs, a figure that reflects the advent of cancer immunotherapy and continued advances in matching treatments and genetics.
As the effects of the recession rippled through the private sector, new companies were built more cautiously and platform technologies became less prevalent.
Since 2015, more than a quarter of drugs approved by the FDA’s Office of Principal Review have been cancer drugs, a figure that reflects the advent of cancer immunotherapy and continued advances in matching treatments and genetics.
As the effects of the recession rippled through the private sector, new companies were built more cautiously and platform technologies became less prevalent.


Post time: Aug-05-2022