Novo Nordisk shares rose more than 7% on Tuesday after the Wegovy maker secured approval for its GLP-1 pill, a world first.
Approval of Novo Nordisk's GLP-1 pill by the US Food and Drug Administration gives the Danish pharmaceutical giant an edge over its US rival Eli Lilly.
The initial dose of the 1.5-milligram pill will be available at pharmacies and through select telehealth providers with savings offers for $149 per month in early January, the firm said.
Patients paying cash can access it for the same price through President Donald Trump's direct-to-consumer website, TrumpRx, under the deal Novo Nordisk struck with his administration last month. Drug pricing has been a priority this year as the United States seeks to reduce the costs consumers pay.
The approval caps a turbulent year for Novo, which has been marked by boardroom drama, supply chain shortages, a bidding war against Pfizer and criticism over the execution of its U.S. strategy.
Eli Lilly is expected to launch its own pill soon, having filed for FDA approval.
However, Novo's clinical data looks “fantastic,” Rajesh Kumar, head of European equity research in life sciences and healthcare at HSBC, told CNBC's “Squawk Box Europe” on Tuesday.
It has food and water restrictions, which can make it difficult for GPs to prescribe, but its tolerability and effectiveness are better than Eli Lilly's pill, Kumar said. “Actually, Novo could have an advantage, and it will depend entirely on how they execute it,” he added.
Lilly also reported positive results from a maintenance trial in which patients stopped taking the company's Zepbound injection directly and NordiskThe rival shot Wegovy. This may help Lilly “maintain a little bit of market share,” Kumar said. “That's what we have to watch,” he added.
— CNBC's Annika Kim Constantino also contributed to this report.
