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The valuation of the Denmark-based pharmaceutical firm climbed by over $8.3 billion following clinical trial results revealed that its oral anti-obesity medication produced nearly as much body mass loss as its Wegovy injection.

Shares of the drugmaker rose by more than 4.5% on the trading day as the market became hopeful about its potential to reclaim its competitive position amid growing rivalry from other manufacturers and lower-cost non-branded versions of weight management medications.

The latest study showed that an oral formulation alternative of Wegovy resulted in substantial weight loss, with nearly 33% of participants losing 20% or more of their body mass. Reported side effects were similar to those of the injection-based therapy.

This marks the initial oral GLP-1 medication presented to the FDA for approval, and a decision is anticipated by the end of this year. Manufacturing has commenced at the company’s US facilities.

The development places the firm in a head-to-head race with American competitor its industry counterpart, which is also working on a once-daily obesity treatment tablet known as its oral candidate. Trial findings from the US company indicated that one in five participants achieved at least one-fifth of their mass over a 72-week timeframe.

While injection therapies are enjoying widespread acceptance, they remain expensive and often subject to limited availability. Pill forms tend to be simpler to produce, store, and administer, and may possibly be sold at a more affordable cost.

Financial experts suggest that pill-based weight loss medications could achieve annual revenues reaching $10 billion, with some estimates pointing to a peak potential of around twenty-five billion dollars.

Shares of firms focused on GLP-1 medications have significantly beaten traditional pharmaceutical investments over the recent half-decade, highlighting robust market interest in this expanding industry.