Asia took over the baton from Wall Street to see a rally in weight-loss related stocks after a key study on an obesity drug showed there was a heart benefit.
(Bloomberg) — Asia took over the baton from Wall Street to see a rally in weight-loss related stocks after a key study on an obesity drug showed there was a heart benefit.
In China, Suzhou Highfine Biotech Co. and Cheng Du Sheng Nuo Biotec Co. jumped by the 20% daily limit, while peers Sinopep-Allsino Bio Pharmaceutical Co. and Innovent Biologics Inc. rose more than 10%. In Korea, Peptron Inc. surged as much as 30%, with Hanmi Science Co. and Hanmi Pharm Co. also gaining.
Stocks related to weight-loss medication got a boost after research results for Novo Nordisk A/S’s Wegovy showed a 20% reduction in heart issues compared to those getting a placebo. Analysts said the results bode well for the global obesity market and may lift demand for Asian firms developing similar drugs.
“The trial data Novo released yesterday shows that its obese drug Wegovy cut cardiovascular risk by 20% in obese patients, which is a lot,” said Leslie Yang, a Bloomberg Intelligence analyst. “This positive results have a read-across effect for China and Korean obesity drug makers.”
READ: The Weight-Loss Drug Frenzy Is Outrunning the Company Behind It
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