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Novo Nordisk Gets A Big Phase 3 Win For Semaglutide

|About: Novo Nordisk A/S (NVO), Includes: LLY
Summary

NVO has marketing applications for its next-gen Victoza at FDA and EMA.

The SUSTAIN clinical trial program is the program for this drug, semaglutide.

NVO has announced favorable trial results against Victoza's major competition.

This could be big for Novo Nordisk (NVO):

Semaglutide superior to dulaglutide on glucose control and weight loss in people with type 2 diabetes in SUSTAIN 7

From a mean baseline HbA1c of 8.2%, 0.5 mg semaglutide achieved a statistically significant and superior reduction of 1.5% compared with a reduction of 1.1% with 0.75 mg dulaglutide. People treated with 1.0 mg semaglutide experienced a statistically significant and superior reduction of 1.8% compared with a reduction of 1.4% with 1.5 mg dulaglutide.

Dulaglutide is the active ingredient in Eli Lilly's (LLY) Trulicity. This drug has been gaining significant share against Victoza as it is injected once-weekly, while Victoza is injected daily.

Superior HbA1c reduction is a gold standard of diabetes drug effect.

Furthermore:

Furthermore, from a mean baseline body weight of 95 kg and a BMI of 33.5 kg/m2, people treated with 0.5 mg semaglutide experienced a statistically significant and superior weight loss of 4.6 kg compared to 2.3 kg with 0.75 mg dulaglutide. People treated with 1.0 mg semaglutide experienced a statistically significant and superior weight loss of 6.5 kg compared to 3.0 kg with 1.5 mg dulaglutide.

Side effects were said to be mild and comparable to Trulicity.

This summary from the company reads well for NVO longs:

"The superior glucose control and weight loss achieved with semaglutide compared to dulaglutide in this trial reinforces the unprecedented results observed in the entire SUSTAIN programme" said Mads Krogsgaard Thomsen, executive vice president and chief science officer of Novo Nordisk. "We are excited about the potential of semaglutide to set a new standard for treatment of type 2 diabetes".

I added more NVO ADRs on this news around $46 as soon as I saw the news.

Perhaps NVO can get back to the $50s now.

Disclosure: I am/we are long NVO.

Additional disclosure: Not investment advice. I am not an investment adviser.