SWITZERLAND—Swiss medical technology company Ypsomed, has secured a contract with Novo Nordisk to supply injection pens for the Danish drugmaker’s next-generation obesity drug, CagriSema.
The agreement, finalized in September 2023, will allow Ypsomed to support Novo Nordisk’s long-term plans for commercial production of its experimental drug candidates.
These candidates are still undergoing clinical trials but are expected to be more effective successors to Wegovy, Novo’s popular obesity treatment.
CagriSema, currently in late-stage testing, is seen as a critical part of Novo Nordisk’s drug pipeline.
According to Reuters, investors are closely watching this drug due to its potential to deliver impressive results.
Novo Nordisk has stated that it expects CagriSema to help patients lose an average of 25% of their body weight within a year—a significant improvement over Wegovy, which has shown an average weight loss of 15%.
Analysts believe that CagriSema’s success is essential for Novo’s position in the competitive obesity treatment market, especially as it faces increasing competition from Eli Lilly’s Mounjaro, another weight-loss drug.
The Phase III trial results for CagriSema are expected by the end of this year, and the outcome could be a game-changer for the company’s future in the obesity treatment sector.
In a deal announced last September, Ypsomed also committed to expanding its manufacturing capacity to produce autoinjectors for Novo’s “second-generation GLP-1” drugs, which are still in clinical trials.
GLP-1 drugs, including Wegovy, work by targeting a hormone in the gut that regulates hunger and blood sugar.
Last year, Ypsomed did not specify which of Novo’s drugs it would focus on, as the new manufacturing capacity will only be available in 2025.
Meanwhile, Novo Nordisk continues to invest heavily in expanding its production capacity for Wegovy to meet soaring demand.
This includes hiring various companies along the supply chain to make injection pens, fill syringes, and package the drug.
These efforts have already started to show positive results, with a long-standing shortage of Wegovy in the U.S. finally easing by late October 2023.
Although Novo Nordisk is developing experimental oral obesity pills, the company still expects injections to remain the dominant method of delivery for its weight-loss treatments through the end of this decade.
Ypsomed, the world’s second-largest supplier of autoinjectors by sales to the pharmaceutical industry (behind SHL Medical), has recently secured deals with 31 companies related to GLP-1 drugs.
The company’s stock has risen by approximately 18% this year, reflecting the growing demand for its products and services in the expanding obesity treatment market.
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