NexenBio is showing strong performance. It is interpreted that NexenBio, known to have a collaborative relationship with Danish pharmaceutical company Novo Nordisk, is being affected by the news that Novo Nordisk's weight management drug Wegovy is adopting a strategy for insurance coverage in the United States.
As of 9:09 AM on the 9th, NexenBio is trading at 8,000 KRW, up 6.81% compared to the previous day.
On the previous day, Novo Nordisk announced the headline results of the SELECT Phase 3 trial (NCT03574597) examining the cardiovascular event prevention effect of Wegovy. The once-weekly Wegovy treatment group reduced cardiovascular events by 20% compared to placebo, meeting the primary endpoint.
Since its launch in the U.S. in June 2021, Wegovy has caused a major stir in the diet market. It is known that celebrities such as Kim Kardashian and Elon Musk also take it. Novo’s stock price rose more than 17%, reaching an all-time high. Novo’s stock price has surged nearly 165% over the past two years.
This study result is expected to influence the possibility of U.S. health insurance covering the $1,300 monthly cost of Wegovy. U.S. law classifies weight loss treatments as lifestyle drugs, meaning they are not treatments for life-threatening diseases but are used to pursue life satisfaction and happiness. For this reason, Medicare, the health insurance for elderly Americans, is prohibited from covering this drug.
Meanwhile, NexenBio announced that its subsidiary, Rossbiovo Therapeutics (hereinafter Rossbiovo), has signed a Confidential Disclosure Agreement (CDA) with Novo Nordisk for the joint development and technology export of diabetes treatments. Accordingly, the two companies plan to establish a plan for the technology export of the miRNA-based ‘RSVI-301/302’ diabetes treatment drug pipeline and joint development of diabetes treatments.
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