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It was quite the week for the weight loss drug industry.
Wall Street's enthusiasm for obesity treatments got a fresh boost on Tuesday after Novo Nordisk said its blockbuster Wegovy drug slashed the risk of heart attack, stroke or heart disease-related death by 20% in a major clinical trial.
That data, from a trial called SELECT, completely crushed expectations: "We were skeptical that NVO-SELECT would show 15%+ benefit," Jefferies analyst Akash Tewari wrote in a Tuesday research note. "But we were wrong. SELECT had a home-run result."
We've always known that Wegovy helps people lose weight. But this new data suggests that the weekly injection – and likely similar drugs – has heart health benefits as well.
That suggests a bright future for the broader weight loss drug industry.
Analysts are particularly excited about what this means for Eli Lilly's drug Mounjaro, which is approved in the U.S. for diabetes and is being reviewed by the Food and Drug Administration for weight management.
Mounjaro has shown better weight loss data than Wegovy, which some analysts and health experts think could translate to even better heart health benefits.
We won't know for sure until we see more data. Eli Lilly is conducting its own study on whether Mounjaro reduces heart health risks, but it's unclear when the company will release results.
The SELECT data could also have an impact on access to obesity drugs as some insurers are dropping them from their coverage. Analysts and health experts believe the data could put more pressure on insurers to cover the expensive medications, which cost more than $1,000 per month.
But that won't happen overnight. Some insurers are still hesitant to cover drugs that will likely strain their budgets, and others simply want to see more positive data on other weight loss drugs.
There are also other, more near-term issues plaguing the weight loss industry.
First, Novo Nordisk and Eli Lilly are both grappling with supply constraints that have led to shortages of their drugs. Novo Nordisk even said Thursday it's extending supply curbs on Wegovy in the U.S.
And then there are reports of patients who had suicidal and self-harm thoughts after taking certain weight loss drugs, which raised questions about the unintended and potentially life-threatening side effects of the treatments.
These issues and the promising new data will have us watching the weight loss space closely.
Feel free to send any tips, suggestions, story ideas and data to me at annikakim.constantino@gmail.com.
