Novo Nordisk’s obesity medicine Wegovy reduces the risk of heart attacks and strokes according to a highly anticipated study.
People with obesity or are overweight with a history of heart issues taking the drug were 20% less likely to suffer a cardiovascular event than those who took a placebo. Novo Nordisk said on Tuesday, August 8.
The study made the Danish drugmaker’s market value jump $60 billion to about $413 billion on the day of the press release.
The Danish company is thereby closing in on the luxury-goods company LVMH’s $442 billion, and is consolidating its position as the second-largest company in Europe.
The Danish drugmaker has gained investors’ favor over the past three years due to Wegovy. Since the end of 2020, the stock has tripled, surpassing other European firms including Nestle SE and ASML NV.
Novo Nordisk on Tuesday jumped as much as 16.7%. This is the company’s biggest intraday gain on record.
The Wegovy trial results could fuel the already frantic demand for the drug. Though obesity has long been linked to cardiovascular problems, the study was designed to show for sure whether peeling away pounds could also have a meaningful impact on heart disease.
“The results make Wegovy the first drug to combine effective weight loss with reduced heart disease risk,” said Martin Holst Lange, executive vice-president for development at Novo Nordisk.
Source: The Business Times