Novo Nordisk (NVO), a stock that rose to record levels Friday, was triggered by higher doses semaglutide, a popular diabetes drug. This led to greater weight loss for patients with diabetes.
Three oral doses of semaglutide were tested by the company. The highest doses, 25 and 50 mgs respectively, resulted in greater body weight and blood sugar reductions than the 14-milligram dose. Novo Nordisk conducted a study over a period of one year on patients with type-2 diabetes.
These results have helped to create a growing fan base for semaglutide. It is sold under many brand names for weight loss and diabetes treatment. The Ozempic version has been in the news for being used by Hollywood's elite to lose a few extra pounds. Ozempic can be used as an injectable diabetic drug. Wegovy is its counterpart for weight loss. Both are in short supply at the moment.
Umer Raffat, Evercore ISI analyst, doesn't think Friday's news will change market dynamics. Novo is competing with Eli Lilly in next-generation diabetes treatment. Amgen (AMGN), a drug in its earlier stages that uses the same mechanism to aid weight loss, is also included in the mix.
Novo Nordisk stock rose 2.7% to 152.30 in afternoon trading today's stock exchange. This pushed shares to a new record high. MarketSmith.com reports that Novo stock broke from a flat base, with a buy level of 144.88. The buy zone is near the top, with shares trading close to the top.