Why is Novo Nordisk’s stock up? Here’s what to know about its weight-loss drug Wegovy’s heart disease trials

On Tuesday, European company Novo Nordisk’s shares hit record highs. While the shares have surged over 150% in the past two years, they were up another 13% today. It happened just after the company revealed the results of a groundbreaking new study on its weight loss drug, Wegovy.

The study, called SELECT, showed that patients on the drug had a 20% lower incidence of heart attack, stroke, or death from heart disease compared with those who took the placebo. While a good outcome was expected, it performed even better than investors and analysts, who predicted a 15% to 17% reduction, thought.

The study began nearly five years ago and involved weekly injections. The study took years to complete, and it was massive, involving 17,500 overweight or obese people who were 45 years or older, with no prior history of diabetes, but a history of heart disease.

Like Ozempic, which Novo also makes, Wegovy has been categorized as a lifestyle drug that can help patients lose weight by making them feel full for longer. It was originally designed to help treat type 2 diabetes, but was made popular as celebrities began using it in combination with other lifestyle changes to lose weight. However, there have been a number of well-documented side effects, such as nausea, diarrhea, vomiting, and possibly suicidal ideation.

In recent months, there has been a wave of less-than-stellar reviews of these two drugs, as lawsuits around more serious complications, like stomach paralysis, have emerged. Still, that hasn’t impacted demand. Novo has already been struggling to keep up with rising demand for the drug since 2021. In May, the company even decided to start halving doses for new patients to ensure they could keep up with existing patients.

Now that it’s showing promise in terms of heart health, it may need a new categorization, which could eventually impact how insurance companies cover treatment. In the U.S., treatment currently costs around $1,300 per month. Experts say the study’s findings may make the drug more affordable, but that’s likely years away.

There is an undeniable obesity epidemic, with around 650 million obese adults globally. Martin Holst Lange, the executive vice president for development at Novo, said in a statement that the drug has “the potential to change how obesity is regarded and treated.”

The results of the study have not been peer reviewed.