Investing.com -- Shares of pharmaceutical giant Eli Lilly (NYSE:LLY) edged down 1.2% in premarket trading following announcements from competitor Novo Nordisk (NYSE:NVO) regarding their new weight-loss drug. On Friday, Novo Nordisk released promising trial results for its obesity treatment, amycretin, which showed a significant weight loss in participants, outpacing Eli Lilly's own drug in early comparisons.
Novo Nordisk's phase 1b/2a clinical trial results revealed that their investigational drug, amycretin, led to an average weight loss of 22% over 36 weeks. This is in contrast to a 2% increase observed in the placebo group. Amycretin, which acts on both the GLP-1 and amylin receptors, is also being developed in a pill form, potentially offering a more convenient treatment option for patients.
The news has put pressure on Eli Lilly, whose shares fell as the market reacted to the potential challenge to its obesity drug, Zepbound, also known as Mounjaro. Despite earlier success, Zepbound's dominance in the obesity treatment market could be threatened by Novo Nordisk's developments, particularly after a setback in December when another of Novo's obesity drugs, CagriSema, failed to meet investor expectations.
Adding to the competitive landscape, Bloomberg Intelligence analyst Michael Shah noted the significance of the new data, stating, "cross-trial comparisons suggesting better efficacy than Eli Lilly's retatrutide." Retatrutide, Eli Lilly's drug candidate under development, showed around a 20% placebo-corrected weight loss at a similar stage in its trial but was tested in heavier patients.
Novo Nordisk's announcement has made clear its intention to further the clinical development of amycretin for the treatment of adults with overweight or obesity. The company's executive vice president for Development, Martin Lange, expressed optimism about the trial results, which align with the weight loss potential previously observed in the oral formulation of the drug.
Investors in Eli Lilly will be closely monitoring the progress of Novo Nordisk's amycretin, as it represents a significant advancement in the competitive field of obesity treatment and could potentially impact Eli Lilly's market share in this segment.
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