Novo Nordisk stock dipped Monday after Eli Lilly posted the details of its head-to-head study comparing Mounjaro with Wegovy in obesity treatment.
The study will enroll 700 volunteers who are overweight or have obesity, but not diabetes. It will compare Lilly's Mounjaro — approved in diabetes treatment, but still in testing for obesity — with Novo's approved weight-loss shot Wegovy. The study will wrap sometime in early 2025, according to ClinicalTrials.gov.
On the stock market today, Novo Nordisk stock fell 1.3% and closed at 170.48.
Lilly shares also lost a fraction and ended the regular session at 383.35.
Novo Nordisk Stock: The Showdown
The head-to-head study will determine which drug leads to a bigger change in body weight over 72 weeks.
The question is an important one for Novo Nordisk stock as the two drugs have slightly different mechanisms. Mounjaro works by activating two hormones to improve blood sugar and slow how fast the stomach empties itself. Wegovy activates just one of the same pair of hormones.
Comparisons between two studies of different drugs are tricky due to time frames and the types of patients enrolled. Lilly wants to resolve those differences in a head-to-head study.
The results could weigh on Novo Nordisk stock. It's widely expected that Mounjaro could overshadow the Novo drug, Wegovy. In an earlier study, Mounjaro recipients lost 16%-22.5% of their body weight. In the final-phase study of Wegovy, participants lost 7% of their weight over 68 weeks.
Lilly's Mounjaro has a fast-track designation in obesity treatment. But the Food and Drug Administration has yet to sign off on its use in weight loss.
That could happen this year, however. Meanwhile, Novo is working to relaunch Wegovy in the U.S. after a long shortage.
Highly Rated Obesity Treatment Companies
Both stocks are highly rated and soaring on enthusiasm for obesity treatment, according to IBD Digital.
Novo Nordisk stock is trading near record highs with a Relative Strength Rating of 96. This puts shares in the leading 4% of all stocks when it comes to 12-month performance. Shares are now approaching a profit-taking zone above a flat-base buy point at 144.88, MarketSmith.com shows.
Lilly shares recently broke out of a cup-with-handle base after topping an entry at 376.41. Lilly stock has an RS Rating of 90 out of a best-possible 99.
Novo Nordisk stock also has a strong 98 Composite Rating, a 1-99 measure of a stock's technical and fundamental metrics.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
