Novo Nordisk (NVO) stock dropped Monday
ALLISON GATLIN
Novo Nordisk (NVO) stock dropped Monday after the drugmaker licensed a Chinese competitor's diabetes and weight-loss drug for up to $2 billion.
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Novo will pay The United Laboratories International $200 million up front and up to $1.8 billion in milestones. The China-based company will also be eligible to receive royalties on sales of the drug it calls UBT251 outside of Chinese mainland, Hong Kong, Macao and Taiwan. United Biotechnology, a subsidiary of The United Laboratories, will retain the rights to UBT251 in those regions.
UBT251 works by mimicking a trio of hormones — GLP-1, GIPR and glucagon — to improve satiety and markers of blood sugar. The drug uses the same mechanism as Eli Lilly's (LLY)retatrutide. The deal adds "important optionality" to Novo Nordisk's pipeline, Martin Holst Lange said in a written statement. Lange is Novo's executive vice president for development.
In morning trades, Novo Nordisk stock slipped more than 2% to 74.99, while Lilly shares rose more than 1% to 848.40.
15% Body Weight Over 12 Weeks
United Biotechnology recently wrapped a Phase 1 study of UBT251 in 36 patients. Patients received a weekly shot for 12 consecutive weeks. At the highest dose, patients lost up to 15.1% of their body weight compared with a 1.5% loss from the placebo group.
In comparison, Eli Lilly's retatrutide led patients to lose up to 17.5% of their body weight, on average, over 24 weeks and up to 24.2% of their weight after 48 weeks.
Novo Nordisk stock is trading well below its 50-day moving average, according to MarketSurge.
Shares also have a poor IBD Digital Relative Strength Rating of 12, which means Novo Nordisk stock ranks in the bottom 12% of all stocks when it comes to 12-month performance.
More to follow.
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