Novo Nordisk said Friday its obesity treatment, Wegovy, reduced symptoms and physical limitations in people whose hearts are failing. But Novo Nordisk stock remained mostly flat.
The company tested Wegovy in patients with heart failure with preserved ejection fraction. This means their hearts are failing, but continue to pump a normal amount of blood. About eight in 10 people with this form of heart failure also live with obesity.
Over a year, Wegovy recipients lost 13.3% of their body weight, on average, and had a 16.6-point improvement in symptoms on a 100-point scale. In comparison, patients given a placebo lost just 2.6% of their body weight and had a 7.8-point improvement in symptoms. The results are bullish for Novo Nordisk stock, which is trading near a record high.
Doctors who treat heart failure with preserved ejection fraction have few options, Dr. Mikhail Kosiborod said in a written statement. Kosiborod is a cardiologist at Saint Luke's Mid-America Heart Institute in Kansas and led the study for Novo Nordisk.
"Today's news heralds a possible fundamental paradigm shift in how cardiologists approach HRpEF in people with obesity," he said. "It's gratifying to be able to share important evidence that has the potential to change the future clinical management of this vulnerable patient population."
Novo Nordisk Stock: Expanding Obesity Treatment
On today's stock market, Novo Nordisk stock rose a fraction to close at 186.43. Shares of close rival Eli Lilly jumped 1%, ending the regular session at 553.65.
Novo's news comes just weeks after the Danish company said patients who received Wegovy for five years had a 20% lower risk of heart attack, stroke or other cardiovascular outcomes. That study focused on people with obesity but not type 2 diabetes.
The studies could help cement the case for reimbursement of GLP-1 drugs — like Novo's Wegovy and Lilly's Mounjaro — for a broader group of patients. Today, many insurers don't pay for the costs of obesity treatment. Mounjaro is approved in diabetes but Lilly hopes to win approval to treat obesity this year.
Meanwhile, Novo Nordisk stock and Eli Lilly stock skyrocketed. Novo shares hit a record high at 192.18 earlier this month. Shares are now above a buy zone that runs from 172.97 to 181.62, according to MarketSmith.com.
Novo Nordisk stock is outperforming most stocks. Shares have a strong EPS Rating of 96, putting the company's profitability in the top 4% of all stocks.
The pharma stock also has a perfect Composite Rating and a Relative Strength Rating of 95, according to IBD Digital. The CR measures fundamental and technical measures, while the RS Rating accounts for 12-month performance.
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