Novo Nordisk (NYSE:NVO) presented the full results from its SELECT cardiovascular trial at an American Heart Association (AHA) meeting on Saturday and analysts at Bank of America (BofA) Securities said they were more favorable than expected.
In a note to clients, the analysts said Nova’s cardiovascular (CV) trial provides another “feather in weight-loss drugs cap,” creating a favorable set-up for Eli Lilly and Co (NYSE:LLY) and its CV outcomes trial, SURMOUNT-MMO.
Novo’s blockbuster diabetes drug Wegovy showed a strong cardiovascular benefit due to the weight-loss benefits and a clean safety profile, which should support broad access and reimbursement, said the analysts, who attended the AHA meeting in person.
“Moreover, the tone and sentiment at the SELECT sessions was electric, with standing room only and multiple ovations, with discussants labeling the results as ‘a transformational moment in healthcare,’” the BofA analysts wrote.
“That said, we expect payers will still try to find a way to limit coverage of the anti-obesity medication (AOM) class; but according to our KOLs (key opinion leaders), the SELECT results will be ‘hard to ignore’ and ‘payers are going to have to go along’ with treatment and coverage, which speaks to the enthusiasm we felt throughout the conference.”
Results from the SELECT trial confirmed that patients had shed weight but also that it cut the risk of a non-fatal heart attack by 28%, of cardiovascular death by 15%, and non-fatal strokes by 7% in patients considered overweight.
The BofA analysts maintained a ‘Buy’ rating for Lilly, with a $700 price target. The company's ongoing CV trial, which is investigating primary and secondary CV prevention, is set to complete in 2027.
Its shares were up 2.4% at $612 in Monday afternoon trade.
Contact the author at stephen.gunnion@proactiveinvestors.com