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Novo Nordisk's Semaglutide Shows Remarkable Results in Study

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Novo Nordisk (NVO - Free Report) announced results from SUSTAIN 7 study, which showed that people with type II diabetes who are treated with once-weekly semaglutide experienced superior reduction in HbA1c and body weight compared with treatment with Eli Lilly and Co's (LLY - Free Report) Trulicity (dulaglutide).  when added to metformin.

In fact, semaglutide is a glucagon-like peptide-1 (GLP-1) analogue being evaluated for the treatment of adults with type II diabetes. Currently, it is under review by seven regulatory agencies, including the FDA, the European Medicines Agency, and the Japanese Pharmaceuticals and Medical Devices Agency.

Shares of the company have rallied 27.1% compared with the Zacks classified industry’s gain of 11.2% on a year-to-date basis.

Notably, the 40-week study evaluated the efficacy and safety of two dosages of semaglutide, in addition to initial standard-of-care therapy metformin against dulaglutide plus metformin. While 0.5 mg semaglutide was compared with 0.75 dulaglutide, 1.0 mg semaglutide was compared with 1.5 mg dulaglutide, when added to metformin.

The study presented that both the doses of semaglutide are statistically significant, and results in superior reduction of HbA1c. In addition, it showed people treated with both the doses of semaglutide experienced a statistically significant and superior weight loss at both doses.

Meanwhile, the superior glucose control and weight loss achieved with semaglutide compared to dulaglutide were consistent with the entire SUSTAIN program. In fact, the results revealed the potential of semaglutide to set a new standard for treatment of type II diabetes.

Novo Nordisk has a strong pipeline, primarily focusing on therapeutic proteins within insulin, GLP-1, blood clotting factors and human growth hormone. The company is making efforts to develop new treatments for diabetes, which is its core area of expertise. Key pipeline candidates include semaglutide and nonacog beta pegol. The potential approval of these candidates will boost the company’s top line.

Zacks Rank & Stocks to Consider

Novo Nordisk currently holds a Zacks Rank #3 (Hold). Better-ranked stocks in health care sector include Alexion Pharmaceuticals, Inc. and Regeneron Pharmaceuticals, Inc. (REGN - Free Report) . Both Alexion and Regeneron sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Alexion Pharmaceuticals’ earnings per share estimates have moved up from $4.55 to $4.77 for 2017 and from $5.49 to $6.43 for 2018 over the last 30 days. The company delivered positive earnings surprises in three of the trailing four quarters, with an average beat of 12.26%. The share price of the company has increased 11.7% year to date.

Regeneron’s earnings per share estimates have increased from $10.52 to $13.81 for 2017 and from $12.10 to $14.54 for 2018 over the last 30 days. The company pulled off positive earnings surprises in two of the trailing four quarters, with an average beat of 6.29%. The share price of the company has increased 27.6% year to date.

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