On May 21, the GIP/GLP-1 receptor dual agonist tirzepatide of Eli Lilly was approved by the National Drug Administration (NMPA) of China to treat adult type 2 diabetes patients for blood glucose control. Lilly China has confirmed to First Financial reporters that Telposide will be commercially listed in China in the fourth quarter of this year.
It is worth noting that both Lilly's Tilposide and Novo Nordisk's Smegglutide submitted new drug marketing applications for weight loss indications in China last year. Novo Nordisk told First Financial reporters that they look forward to the approval of this drug this year.
Lars Fruergaard Jorgensen, Global President and CEO of Novo Nordisk, told reporters at a global media conference on May 21, "This is another classic market where competitors compete with each other, and I welcome it. There are more patients in need of treatment than available products, so this is a positive competitive dynamic, and we are accustomed to participating in competition."
Exploring the mechanism of action of combination drugs
As pharmaceutical giants increase investment in the field of weight loss drugs, future competition will also move towards more cutting-edge technologies. Novo Nordisk revealed at a media briefing the company's future research and development direction in the field of weight loss drugs.
Marcus Schindler, Executive Vice President and Chief Scientific Officer of Research and Early Development at Novo Nordisk, stated that Novo Nordisk is exploring the mechanisms of action of combination drugs and seeking better therapeutic effects.
Schindler stated that in drug research and early development, Novo Nordisk is exploring new biological mechanisms for treating obesity, some of which are achieved through synergistic integration of GLP-1, such as the physiological mechanism of combining GLP-1 with amylin.
According to the data from the Novo Nordisk Phase I trial, patients receiving the candidate drug Amycretin with an average weight of 89 kilograms experienced a weight loss of over 13% after 12 weeks of treatment, demonstrating safe and well tolerated characteristics.
Schindler also stated that reducing the frequency of administration; Focus on body composition and maintain muscle mass; Assist in long-term weight management; Seeking a treatment plan that combines safety and tolerability is one of the major directions for future weight loss drug development.
"We must admit that in many fields, our understanding of science is still too limited, and further exploration of disease pathogenesis is needed," Schindler said. He hopes that through AI and machine learning, researchers can accelerate their understanding of diseases.
In terms of indications for GLP-1 drugs, Novo Nordisk is also exploring the therapeutic effects of diseases including metabolic liver disease (Mash) and chronic kidney disease (CKD).
In response to the current shortage of GLP-1 drugs, Henrik Wulff, Executive Vice President and Head of Product Supply, Quality, and IT at Novo Nordisk, admitted that the demand for GLP-1 drugs has greatly exceeded the company's expectations. "It's like as soon as the door opens, demand keeps pouring in. The demand for patients is constantly growing, and we are doing our best to improve production capacity," he said.
Responding to corporate valuation issues
Driven by strong demand for GLP-1 drugs, Novo Nordisk's stock price has surged by nearly 60% in the past year, and its current market value has exceeded $600 billion, even surpassing the world's largest luxury goods group LVMH, becoming the highest valued enterprise in Europe.
When asked if the market value of Novo Nordisk is "too large" for a Danish company, Zhou Fude stated that Novo Nordisk is a global enterprise with operations covering most markets and establishing a global production layout. The company is expanding new production capacity, and with the completion of these capacity facilities, it will create more employment, thereby forming a positive driving effect on the Danish economy.
On the other hand, some market participants are concerned that the growth of companies such as Novo Nordisk and Lilly can support the current valuation of billions of dollars - especially since some patients often cannot adhere to medication for the long term, can the subsequent demand remain strong?
In response to this, Zhou Fude said, "The duration of medication for obese patients is very important, and it is also important for company valuation. We are still in the early stages and it is difficult to make judgments. However, personally, I believe that patient behavior is different, and different patients have different needs. As long as it can generate value for patients, whether it is long-term or short-term medication, we hope to meet the needs of different patients."
As more competitors enter the market in the future, whether GLP-1 drugs will be reduced in price is also a key concern for the market. Zhou Fude stated that the price reduction of drugs is mainly achieved in different markets through medical insurance negotiations with the paying party, based on the value of the drugs, and reaching an agreed price with the paying party.
In addition to GLP-1 drugs, the competition between Novo Nordisk and Lilly has also expanded to include new insulin. Last week, Eli Lilly said that in two studies on patients with type 2 diabetes, the weekly insulin injection showed the same blood glucose lowering effect as the commonly used daily insulin.
The reporter from First Financial News learned from Novo Nordisk that in 2023, a weekly injection of basic insulin icodec has been submitted for listing in China. This is the first time that Novo Nordisk has completed clinical trials in China, the European Union, and the United States simultaneously, and submitted new drug marketing applications simultaneously. Lilly, Sanofi, and Novo Nordisk, the three giants, hold a 90% share of the US insulin market.
At the same time, Novo Nordisk is also increasing its innovative pipeline layout for insulin. It is reported that the company is developing glucose sensitive insulin and has completed the concept validation of the first glucose sensitive insulin "Insulin 845 (Phase I trial)". This is an intelligent, blood glucose responsive molecule that can maintain stable control of blood sugar within the normal range and reduce or eliminate the occurrence of hypoglycemic events.
In addition, Novo Nordisk also hopes to cure type 1 diabetes thoroughly through cell therapy. The research project shows that the new β Cells have demonstrated the potential to restore blood glucose homeostasis to human set values and prolong the homeostasis period.