Wegovy-maker Novo Nordisk shares surge after GLP-1 pill approval

Novo Nordisk’s stock saw a significant increase of 6.9% on Tuesday following the approval of its groundbreaking GLP-1 pill by the U.S. Food and Drug Administration. This approval positions the Danish pharmaceutical company ahead of its American competitor Eli Lilly.

The GLP-1 pill, with a starting dose of 1.5 milligrams, will soon be available in pharmacies and through select telehealth providers at a cost of $149 per month starting in early January. Patients can also purchase the pill at the same price through President Donald Trump’s direct-to-consumer website, TrumpRx, as part of an agreement made between Novo Nordisk and the administration last month.

This approval comes at the end of a challenging year for Novo Nordisk, marked by board conflicts, supply chain issues, a bidding war with Pfizer, and scrutiny over its U.S. strategy. Despite upcoming competition from Eli Lilly, experts like Rajesh Kumar from HSBC praise Novo’s clinical data as “fantastic” and note the pill’s superior tolerability and efficacy compared to its rival.

Although Novo’s pill comes with certain restrictions, such as on food and water intake, Kumar believes that the company may have an advantage depending on its execution strategy.

— Contribution by CNBC’s Annika Kim Constantino.