Novo Nordisk's shares rose as much as 4% following a recommendation from England's drug price regulator, the National Institute for Health and Care Excellence (NICE), to use its best-selling drug Wegovy for the prevention of heart attacks and strokes [1]. Wegovy, primarily known as a weight loss treatment, is also approved for reducing the risk of major cardiovascular events in individuals living with overweight or obesity [1]. NICE's recommendation will significantly expand access to Wegovy on the National Health Service (NHS), marking a notable development in the drug's availability in England [1].
The regulator assessed the cost-effectiveness of semaglutide, the active ingredient in Wegovy and diabetes treatment Ozempic, and recommended it as an option for adults who have previously experienced a heart attack, stroke, or a serious circulation problem in the legs, provided they have a body mass index (BMI) of at least 27 [1]. In response to the news, Novo Nordisk's Copenhagen-listed shares were last seen up 2% in morning trading, after initially rising as much as 4% [1]. The broader pan-European blue-chip index Stoxx 600 was also up 2.1% [1].
This recommendation is expected to have a significant impact on Novo Nordisk's market position and the accessibility of Wegovy for cardiovascular risk reduction in England [1].
CONCLUSION
NICE's recommendation to expand Wegovy's use for heart attack and stroke prevention has driven a notable rise in Novo Nordisk's share price. The expanded access on the NHS is likely to boost demand for Wegovy and strengthen Novo Nordisk's market presence in England. Market sentiment is positive, reflecting investor optimism about the drug's broader application.