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Shares of Novo Nordisk (NVO, Financial) were nearly 8% higher on Friday morning after its latest clinical trial produced strong results. Over 36 weeks, the Danish pharmaceutical company said that amycretin, a GLP-1 and amylin receptor agonist, achieved an average body weight reduction of 9.7%. The speed of the results has sparked optimism among investors, but the results came in lower than other treatments. At the same time, the company said patients suffered only mild to moderate gastrointestinal side effects, boosting confidence in the potential of amycretin.
The encouraging trial outcome is different from recent setbacks with other drugs from the same class, such as Ozempic and Wegovy. However, these setbacks don't dampen Novo Nordisk's optimism for amycretin's future, and the development strides continue. That reflects the company's consolidation of the weight loss and diabetes treatment markets and that many are looking to the pipeline for more growth. Friday's announcement offered just the kind of optimism for the company's investors it needs, as Novo Nordisk has not been bashful about expanding its market reach in the GLP-1 arena.
This article first appeared on GuruFocus.