Novo Nordisk (NVO) US Certificates of Deposit have climbed 1.5% in early trading on Tuesday after the launch of its popular weight loss drug, Wegovy, in the UK.
Novo Nordisk's ADRs are up more than 40% year-to-date as demand for its weight loss treatments surges, overtaking LVMH to become the most valuable company of Europe in terms of market capitalization. .
KEY THINGS TO REMEMBER
- Novo Nordisk is launching its popular weight loss drug, Wegovy, in the UK.
- Given its supply constraints, it may take Novo Nordisk a few years to increase production enough to meet demand.
- Novo Nordisk overtook LVMH to become Europe's most valuable company by market capitalization.
Wegovy will be available through the National Health Service (NHS) weight management services for people who meet the National Institute for Care and Excellence (NICE) criteria. Criteria require at least one weight-related comorbidity and a high body mass index.
In view of high demand and from Wegovy's limited supply, the NHS has been allocated sufficient supplies for around 50,000 patients. Alternatively, the drug can be purchased privately from a healthcare professional.
The final price agreed with the NHS has not yet been disclosed. In the United States, the drug is available for $1,350 per dose once a month, while in Europe it is available for between 170 and 300 euros ($190 to 330) per month.
With constraints of supply, it could be a few years before Novo ramps up production enough to meet demand. The company has taken steps to limit its availability in the United States and Germany. She also recently purchased Embark Biotech to enhance her line of weight loss treatments.
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