Weight loss drug approval helps Novo too

Two important decisions in the United States helped Novo Nordisk (OMX: NOVO B) to a solid gain yesterday. The first obesity-drug approval in a great while in Arena Pharmaceutical’s (NASDAQ: ARNA) lorcaserin, which will be marketed as Belviq, the previous night pushed the likelihood in investors minds that Novo’s type-2 diabetes approved Victoza will one day be approved for the purpose as well. While effective weight-loss drugs might eat away from future diabetes-related sales, that is obviously not a concern in any way, and lorcaserin for one hasn’t shown any compelling efficacy.

Other approval decisions in the field are due in the near future with Vivus Inc. (NASDAQ: VVUS) and Orexigen Therapeutics (NASDAQ: OREX , FRA: JXS) hoping for a similar ruling. Yesterday’s almost too close to call ruling by the Supreme Court to uphold the so-called ObamaCare was an event that was probably going to be considered positive either way. With the decision to keep it in place as it is, certain uncertainty is removed concerning pharmaceutical companies, even if businesses are confused on the real effects of the mammoth of a Law.