FDA OKs Novo Nordisk Diabetes Drug

The FDA is expected to make an approval decision on Exenatide EQW by March 5.

Victoza and Byetta belong to the GLP-1 class of injectable diabetes drugs intended to control blood sugar in Type 2 diabetes medicines. Victoza, as a once-daily injection, is more convenient than Byetta, which requires two injections per day.

But Exenatide EQW, if approved, will reduce the number of injections required to once per week. The drug-deliver technology that enables Exenatide EQW to be dosed so infrequently comes from Alkermes(ALKS), which will receive royalties on sales of the drug when approved.

Citi biotech analyst Yaron Werber upgraded Amylin Tuesday to a buy from hold because he thinks the FDA's decision to approve Victoza means the agency will also approve Exenatide EQW.

"This de-risks [Exenatide EQW] and shifts the question from 'if' to 'when' [Exenatide EQW] is approved in our view," he writes.

-- Reported by Adam Feuerstein in Boston.

Follow Adam Feuerstein on Twitter.

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