Recently Denmark based Novo Nordisk (NVO) announced that Victoza (liraglutide), a once-daily injection for the treatment of type II diabetes in adults, was superior to Merck’s (MRK) Januvia (sitagliptin) as a combination therapy. It was observed that patients taking Victoza showed better results in lowering blood sugar and fasting glucose level compared to Januvia at 52 weeks.
Furthermore, patients treated with Victoza underwent greater weight loss compared to those treated with Merck’s therapy. The patients who received 1.8 mg Victoza were more satisfied with the treatment than those receiving Januvia. The data was presented at the 70th Annual Scientific Sessions of the American Diabetes Association held in Orlando.
The extension study aimed at evaluating the safety and efficacy of Victoza at doses 1.2 mg and 1.8 mg in conjunction with metformin with once-daily 100 mg Januvia (dosed once daily) plus metformin. The duration of the study was initially 26 weeks and was extended by an equivalent period subsequently. The disease was unsatisfactorily controlled by metformin alone in the enrolled patients.
In January 2010, Victoza received approval from the US Food and Drug Administration (FDA) for the treatment of type II diabetes in adults. The drug is approved for use with proper diet, exercise and other diabetes medicines for lowering blood sugar levels.
Victoza, a glucagon-like peptide-1 (GLP-1) molecule, has also been approved by the European Commission and regulatory authorities in Japan, Norway, Mexico, Iceland, Lebanon, Russia, Argentina, India, Brazil, Canada and Switzerland. The Denmark based company is currently seeking approval in China.
Lucrative Diabetes Market
The type II diabetes market is highly lucrative with a huge unmet need. According to data released by GlobalData, the type II diabetes market was worth $21.9 billion in 2009 across the globe. This represented a compound annual growth rate of 11.2% from 2001 to 2009. The incidence of diabetic patients in the US and major European countries is on the rise.
Victoza and Byetta are the only GLP-1 molecules currently available. Victoza is likely to witness increased competition as a once-weekly formulation of Byetta (proposed trade name: Bydureon) could receive approval later this year for the treatment of type II diabetes. Bydureon has been co-developed by Alkermes Inc. (ALKS), Amylin Pharmaceuticals Inc. (AMLN) and Eli Lilly & Co. (LLY).
Other GLP-1 molecules under development include GlaxoSmithKline’s (GSK) Syncria (albiglutide) and Roche (RHHBY) /Ipsen’s taspoglutide. We note that Glaxo’s Syncria, currently in late-stage development, is also a once-weekly injection.
Our Recommendation
Novo Nordisk is a Zacks #3 Rank (‘hold’) company, which indicates that the stock is expected to perform in line with the overall U.S. equity market for the next 1-3 months. Our long-term Neutral stance on the company indicates that the stock is expected to replicate its short-term performance, but over 6-12 months. Consequently, we advise the investors to retain the stock over the time-period.
Read the full analyst report on “NVO”
Read the full analyst report on “MRK”
Read the full analyst report on “GSK”
Read the full analyst report on “AMLN”
Read the full analyst report on “LLY”
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