Positive trial data showing Novo Nordisk’s obesity drug helps save and extend lives, not just lose weight, could propel Europe's best-performing stock even higher, according to 10 investors and industry analysts interviewed by Reuters.
Demand for the Danish company's weight-loss treatment Wegovy is soaring in the United States, leading it tofaces challenges in getting broad health insurance coverage from European governments as well as insurers, and the U.S. Medicare health plan for older Americans that classifies weight-loss treatments as lifestyle drugs.
Novo launched a large-scale study involving 17,500 patients almost five years ago to assess whether Wegovy reduces the risk of major cardiovascular events like strokes or heart attacks in overweight or obese people with a history of heart disease. Investors, including BMO and AllianzGI, said a reduction in the risk of a major cardiovascular event like a stroke of 17% or more would be considered a positive result which would likely boost Novo's shares.
A 20% risk reduction could boost the stock to as high as 1,500 Danish crowns , a third higher than its current price, Barclays said, while failure could see it fall to 900.
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