The World Health Organization will consider adding obesity treatments to its "essential medicines list," in a decision that could bolster Eli Lilly and Novo Nordisk stocks.
Next month, a panel of WHO advisors will review requests for new drugs to be included on the list, Reuters reported. The list guides purchasing decisions for low- and middle-income countries. An updated list is expected in September.
The decision is expected to impact Novo's Saxenda, a weight-loss shot due to lose patent protection in early 2026, according to DrugPatentWatch.com. Novo also makes a newer obesity treatment called Wegovy. Eli Lilly's diabetes drug Mounjaro also is in testing for obesity.
On today's stock market, Novo Nordisk stock lifted 0.8% to close at 156.58. Eli Lilly stock fell 0.5% and ended the regular session at 335.87.
The biggest jump came from Viking Therapeutics, which popped 3.2% to 15.93. Viking shares are fresh off a 69% surge on Tuesday after the company published the results of an early-stage obesity treatment study. Amgen, which is also working on a weight-loss drug, saw shares rise 1.1% to 241.03.
Eli Lilly Stock: Obesity Treatments On Deck
The request comes from three doctors and a researcher in the U.S. They asked the global health agency to include liraglutide as an essential medicine. Liraglutide is the active ingredient behind Saxenda.
Saxenda and Wegovy work by activating a hormone that controls hunger signals in the brain and slows how fast the stomach empties. That hormone, GLP-1, is also a frequent target in diabetes drugs. Lilly's Mounjaro and Viking's experimental drug activate the same hormone as well as another called GIP. In contrast, Amgen's potential obesity treatment activates GLP-1 and blocks GIP.
The WHO panel could reject the request to include obesity treatments, or ask for more information. If included, Novo Nordisk could see sales of Saxenda — and potentially Wegovy — climb in lower-income countries. However, Wegovy is currently in short supply and Novo is focusing on its relaunch in the U.S.
Novo Nordisk stock touched a record high on Wednesday. Shares have a strong Relative Strength Rating of 95 out of a best-possible 99, according to IBD Digital. This puts shares in the top 5% of all stocks when it comes to 12-month performance.
Lilly shares have a lower RS Rating of 70. But Eli Lilly stock recently topped its 50-day and 200-day lines, according to MarketSmith.com.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
