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Novo Nordisk climbs after Wegovy weight-loss drug reportedly approved in China

Published 06/25/2024, 06:50 AM
© Reuters
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Investing.com -- Copenhagen-listed shares in Novo Nordisk (CSE:NOVOb) edged up on Tuesday, touching record high levels, after its blockbuster Wegovy weight-loss treatment reportedly received approval from regulators in China.

According to several media reports, Novo Nordisk said in a post on Chinese social media platform WeChat that the drug had been given the green light in the world's second-largest economy for "long-term weight management."

The company did not outline when it expects to begin selling the product in China and did not reveal how much it plans to charge or supply to the region, the reports noted.

The announcement comes as Novo Nordisk faces stiff competition in the country, where the number of overweight adults is seen reaching 540 million by 2030 -- an uptick of 2.8 times versus 2000 levels, according to a Chinese public health study cited by Reuters. Peer Eli Lilly (NYSE:LLY) has also received approval from China for its diabetes drug tirzepatide, and is looking for similar approvals for its Zepbound weight-loss drug.

Globally, the weight-loss market is expected to worth at least $100 billion by the end of the decade.

Demand has soared for Novo Nordisk's Wegovy, propelling the firm's shares higher by more than 87% over the past one-year period and making it Europe's most valuable listed businesses.

Yet the success has left Novo Nordisk scrambling to boost supplies of Wegovy, leaving some patients without the weekly injection. As a result, the company is pushing to increase its manufacturing capabilities. On Monday, it announced a $4.1 billion investment in a facility in the U.S. state in North Carolina.

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