Shares of Wegovy maker Novo Nordisk jump after GLP-1 pill approval

Actions in Novo Nordisk surged 6.9% on Tuesday, after maker Wegovy won approval for its GLP-1 pill – a world first.

US Food and Drug Administration approval of Novo Nordisk’s GLP-1 pill gives Danish pharmaceutical giant a head start over its US rival Elie Lilly.

The initial 1.5-milligram dose of the pill will be available at pharmacies and through select telehealth providers with savings offers of $149 per month in early January, the company said.

Patients who pay cash can access it at the same price through President Donald Trump’s direct-to-consumer website, TrumpRx, according to the agreement concluded by Novo Nordisk with his administration last month. Drug prices are a priority this year, as the United States seeks to reduce costs paid by consumers.

This approval caps an eventful year for Novo, marked by stage dramasupply chain shortages, a bidding war against Pfizerand criticism of the execution of its American strategy.

With Eli Lily expected to launch its own pill soon, Novo’s clinical data looks “fantastic,” Rajesh Kumar, who leads European life sciences and healthcare equity research at HSBC, told CNBC’s “Squawk Box Europe” on Tuesday.

Novo’s pill has food and water restrictions, which can make it more difficult for GPs to prescribe, Kumar said, but noted that its tolerability and effectiveness are better than Eli Lilly’s pill. “Novo might actually have an advantage, and that will depend entirely on how they execute,” he added.

—Annika Kim Constantino of CNBC also contributed to this report.