Novo Nordisk A/S Sponsored ADR Class B (NVO.US) has launched a clinical study for a low-dose oral Wegovy, targeting a wider population for weight loss.

Novo Nordisk A/S Sponsored ADR Class B (NVO.US) is testing a low-dose version of its blockbuster weight loss oral medication, Wegovy, in a new study. This research will help determine how low the dosage can go for patients while still achieving weight loss effects. According to a study description released by a U.S. government database on Tuesday, the trial, which started on August 12 and plans to recruit 450 participants, will test two low-dose tablets with unspecified dosages, compared to a placebo. Patients recruited for this low-dose study must have a BMI of at least 27, which falls under the "overweight" category defined by the World Health Organization (WHO). Most weight loss drug studies attempt to have patients use the highest possible drug doses to establish a benchmark for the drugs' effects. However, in the real world, patients often stick to lower doses. Some may find the side effects of the medication hard to tolerate, or simply discover that lower doses are sufficiently effective. Additionally, some patients may adopt a "micro-dosing" approach, and certain telemedicine companies in the U.S. are even promoting these types of medications to individuals whose weight is not above the normal range. Since its launch in the U.S. in January this year, Wegovy has received over 5 million prescriptions, rapidly capturing market share in the competitive weight loss pharmaceutical market. According to BMO Capital Markets analyst Evan Segman, currently more than two-thirds of patients are using the lowest two dose levels of Wegovy. For self-paying patients in the U.S., the lowest two dose levels are priced at about half the price of the highest two dose levels. A financial report released by Novo Nordisk A/S Sponsored ADR Class B earlier this month showed that second-quarter adjusted sales grew 7% year-over-year to DKK 78.488 billion (approximately USD 12.09 billion), outperforming the market's expectations of USD 11.35 billion; adjusted operating profit increased by 11% year-over-year to DKK 33.389 billion, also exceeding market expectations. The much-anticipated sales of Wegovy in the second quarter reached DKK 3.22 billion, slightly below the market expectation of DKK 3.27 billion. As Novo Nordisk A/S Sponsored ADR Class B strives to reclaim market share from Eli Lilly (LLY.US) in the weight loss drug sector, the initial rapid growth of Wegovy had led investors to anticipate potentially explosive growth. However, the latest results have raised concerns about the company's long-term competitiveness. In this regard, Novo Nordisk A/S Sponsored ADR Class B CEO Mike Doustdar explained that the demand for Wegovy has been offset by lower prices. He also mentioned that the next market for Wegovy will be Germany, the largest pharmaceutical market in Europe. Mike Doustdar stated in a declaration, "The Wegovy portfolio remains a key growth driver for Novo Nordisk A/S Sponsored ADR Class B through 2026. The rapid adoption of Wegovy in the U.S. market is a primary driver. Meanwhile, early promotional performance in markets outside the U.S. is encouraging. The launch of the high-dose version of Wegovy will further drive growth."