The advent of GLP-1 therapies has been a game changer in the medical sector in the field of weight loss and chronic obesity. The GLP-1 market is currently dominated by semaglutide (Ozempic and Wegovy), manufactured by Novo Nordisk A/S New York Stock Exchange: HBO and tirzepatide (Mounjaro and Zepbound), produced Eli Lilly and Co. New York Stock Exchange: LLI. Once-a-week injections are still in short supply, even though they cost more than $1,000 a month. Sales of Eli Lilly’s Mounjaro grew more than 114% YoY in the third quarter of 2024.
But health insurers have become increasingly reluctant to provide coverage, and people worried about needlesticks continue to avoid it. With all the new treatments under investigation, Novo Nordisk and Novo Nordisk are developing a new approach to weight loss using ultrasound. GE HealthCare Technologies Inc. NASDAQ: GEHC.
Peripheral focused ultrasound for diabetes and weight loss
GE HealthCare Technologies today
GE HealthCare Technologies
As of 01/21/2025 16:00 Eastern
- 52 week range
- $71.31
▼
$94.55
- Dividend yield
- 0.16%
- P/E ratio
- 23.99
- Target price
- $96.00
Traditional ultrasound uses high-frequency sound waves to create real-time images of internal organs and soft tissue. GE HealthCare Technologies and Novo Nordisk are collaborating to develop a new technology called peripherally focused ultrasound (PFUS).
This technology uses highly targeted high-frequency ultrasound to regulate the body’s metabolic functions. It is a non-invasive bioelectronic medicine that can help treat chronic diseases such as type 2 diabetes and obesity. PFUS stimulates neural pathways to improve glucose metabolism in diabetic patients. PFUS sends sound waves to activate parts of the nervous system and modulate certain neural responses.
Novo Nordisk’s expertise in metabolic diseases joins forces with GE HealthCare
Initial studies show promising results. The study found that PFUS technology was successful in treating type 2 diabetes in mice by using ultrasound pulses to stimulate nerve pathways in the liver, which helps regulate glucose levels. GE HealthCare’s collaboration with Novo Nordisk will build on these findings and leverage Novo Nordisk’s expertise in treating metabolic diseases to fine-tune PFUS technology for human use.
Novo Nordisk Vice President and Chief Development Officer Martin Holst Lange commented: “We look forward to exploring the potential impact this technology could have on treating people with type 2 diabetes and obesity, as despite recent research, diseases there remains significant unmet need. progress in care. Although it is early days, the potential for using ultrasound in therapeutic applications is exciting, and we welcome our collaboration with GE HealthCare in this truly new area.”
GE HealthCare President of Ultrasound Roland Rott added: “The collaboration with Novo Nordisk paves the way to transform ultrasound from screening and diagnostics to therapeutics. We are committed to validating and further developing this potentially revolutionary science in an effort to offer patients alternative treatment options for chronic diseases.”
Combination of amylin analog and GLP-1 agonist from Novo Nordisk
Novo Nordisk A/S today
Novo Nordisk A/S
- 52 week range
- $78.17
▼
$148.15
- Dividend yield
- 0.89%
- P/E ratio
- 26.20
- Target price
- $140.20
While Novo Nordisk is experiencing strong sales growth, with Ozempic and Wegovy achieving 69% year-on-year (YoY) revenue growth, the company continues to expand its portfolio to cement its oligopoly status in the GLP-1 industry. Novo’s CagriSema is a once-weekly injection that combines cagrilinitide, a new amylin analog, and semaglutide.
Amylin analogues slow the rate at which food moves from the stomach to the intestines, thereby inhibiting the release of glucagon. Glucagon is a hormone that increases blood sugar levels. This makes you feel fuller longer after eating, which also helps reduce your overall calorie intake.
CagriSema demonstrated significantly greater weight loss in obese participants with type 2 diabetes. CagriSema users had an average weight loss 3 times greater than Wegovy users, 15.6% versus 5.1%, respectively. When taking cagrilinitide alone, subjects lost 8.1% of their mean body weight. CagriSema essentially makes users feel fuller longer by suppressing appetite with an amylin analogue while increasing insulin release and decreasing glucagon secretion with GLP-1.
CagriSema phase 3 results were good, but the market is selling the news
On December 20, 2024, Novo Nordisk presented results from the phase 3 clinical trial REDEFINE using CagriSema. After 68 weeks, patients treated with CagriSema experienced a 22.7% weight loss compared to 11.8% with cagrilinitide 2.4 mg alone and 16.1% with semaglutide 2.4 mg.
Additionally, 40.5% of patients treated with CagriSema lost 25% or more at 68 weeks, compared with 6% in the cagrilinitide group, 16.2% in the semaglutide group, and 0.9% in the placebo group. Results from the Phase 3 REDEFINE 2 trial in patients with type 2 diabetes are expected in the first half of 2025. NVO shares fell 17% in response, likely due to a 22.7% weight loss instead of more patients reaching the 25% weight. loss mark.
Novo Nordisk loses battle with Eli Lilly due to shortages
Capacity constraints are a concern as obesity treatment’s 69% YoY growth pales in comparison to rival Eli Lilly’s 114% YoY revenue growth. Novo needs to strengthen its ability to compete effectively. Novo shares are down 26.24% over the past 12 months and down 8.52% in 2025 alone. The revenue growth trajectory declined from 43.78% YoY in Q4 2023 to 23.68% in Q1 2024 to 23.79% in Q2 and 22.53% in Q3 2024. The PE ratio of 25.5 is below the 3-year median of 39.84, indicating this. could be approaching the playing field for investors patiently waiting for a pullback.
Ozempic and Wegovy have been experiencing supply shortages since April 2022. According to Novo Nordisk, more than 25,000 new people start taking Wegovy every week, further exacerbating the supply shortage. Supply constraints are expected to continue until 2025. This is a major factor behind the dramatic increase in sales of complex semaglutides from suppliers such as Hims and Hers Health Inc. New York Stock Exchange: HIMS.
Before you consider using GE HealthCare technologies, here’s what you need to hear.
MarketBeat tracks Wall Street’s top-rated and best-performing analysts daily and the stocks they recommend to their clients. MarketBeat identified five stocks that top analysts were quietly telling their clients to buy now, before the broader market caught on… and GE HealthCare Technologies wasn’t on the list.
While GE HealthCare Technologies currently has a Moderate Buy rating among analysts, the top-rated analysts think these five stocks are Strong Buys.
View five stocks here
Unlock a free copy of MarketBeat’s in-depth guide to stock investing and find out which cannabis companies are poised for growth. Plus, get exclusive access to our daily newsletter with expert stock recommendations from top Wall Street analysts.
Get this free report