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Biopharma’s GLP-1 Race Heats Up
Our conviction in Novo Nordisk continues unabated, particularly in the work it is doing to treat the approximately 890 million people worldwide who struggle with obesity and the 530 million people suffering from Type 2 diabetes. While this field has attracted competition, the company has not rested on its laurels after launching its groundbreaking Type 2 diabetes medication Ozempic in 2017 and its obesity follow-on treatment Wegovy in 2021.
Wegovy is a subcutaneous injectable that can help adult obese patients lose up to 6% of their weight in 12 weeks. In March, Novo Nordisk reported that amycretin, a single molecule that operates as a GLP-1 receptor agonist, could eventually become the best-in-class treatment. In a small, early trial sample, the oral treatment achieved 13.1% weight loss within 12 weeks for most patients. This result beats Lilly’s oral obesity treatment orforglipron, which has only shown a 6% to 8% weight loss during this time span. While early indicators of its safety and efficacy are positive, the drug is still experimental. It must undergo additional testing that may take two or more years to complete before it has the possibility of being prescribed.
Wegovy works by activating GLP-1 receptors, which are present in several areas of the brain involved in appetite regulation. GLP-1 is a hormone that lowers blood sugar, suppresses appetite and makes patients feel full. Semaglutide and tirzepatide are active ingredients that mimic the GLP-1 hormone in these obesity treatments and for those addressing Type 2 diabetes. Amylin is a different hormone that further enhances appetite control and blood sugar regulation and is exclusive to amycretin. In essence, the new drug appears to be a better mousetrap and one that Novo Nordisk and other companies are eyeing as potentially the next generation of weight loss drugs.
Other treatments in development activate GLP-1 receptors while blocking another gut hormone receptor called GIP. Amgen and Zealand Pharma, with partner Boehringer Ingelheim, are currently testing drugs in this class. It is a different approach to Lilly’s Zephound, which activates GIP, and Novo’s Wegovy, which does not target GIP at all. Dedicated health care investment professionals on the team are monitoring these developments closely to see how they play out.
We believe Novo Nordisk has the best obesity/Type 2 diabetes pipeline in the industry, one that should help it protect its franchise from competition over the next 10 years. In addition, Novo Nordisk is allocating capital prudently by rapidly ramping up its manufacturing capacity, while increasing R&D spending in parallel with the company’s rising revenues. In our view, high-performing management teams are able to balance near-term rewards with a long-term investment strategy that leads to sustainable growth.
Type 2 Diabetes and Obesity Drugs
Company
Active Ingredient/Brand Name
Indication
Form
Development Status
Novo Nordisk
Semiglutide/Wegovy
Obesity
Injectable
In Market
Novo Nordisk
Semiglutide/Ozempic
Type 2 Diabetes
Injectable
In Market
Novo Nordisk
Semiglutide/Rybelsus
Type 2 Diabetes
Oral
In Market
Novo Nordisk
Liraglutide/Victoza
Type 2 Diabetes
Injectable
In Market
Novo Nordisk
CagriSema
Obesity
Injectable
Phase 3
Novo Nordisk
Amycretin
Obesity
Oral
Phase 1
Lilly
Tirzepatide/Zepbound
Obesity
Injectable
In Market
Lilly
Tirzepatide/Mounjaro
Type 2 Diabetes
Injectable
In Market
Lilly
Dulagutide/Trulicity
Type 2 Diabetes
Injectable
In Market
Lilly
Retatrutide
Obesity
Injectable
Phase 3
Lilly
Orforglipron
Obesity
Oral
Phase 3
Amgen
Maridebart Cafraglutide/MariTide
Obesity
Injectable
Phase 2
Zealand Pharma
Survodutide
Obesity
Injectable
Phase 3
Viking Therapeutics
VK2735
Obesity
Injectable/ Oral
Phase 2
Read more about our research into the market for these and other health care innovations!
Artisan Partners Global Equity Team manages portfolios which held securities issued by Novo Nordisk as of 3/31/24. Portfolio securities are subject to change.
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