In the process, its market capitalization has surpassed the size of the Danish economy, the market cap of French luxury conglomerate LVMH, and now, that of even Tesla.

On Thursday, Novo announced that it had seen successful results from an early trial of an experimental weight-loss-aiding pill, amycretin. In fact, the drug was found to be even more powerful than its injectable obesity treatment—participants shed 13.1% of their weight in 12 weeks with amycretin, while Wegovy patients lost 6% of their weight in the same period.

Novo’s shares soared 8% on the news Thursday, hitting a record high and making the weight-loss-drug maker the world’s 12th most valuable company (up from 14th).

The Danish behemoth’s market cap surpassed $600 billion as it plowed past American EV maker Tesla, whose market cap stood at $569 billion on Thursday, CNBC reported citing FactSet data.

Novo’s shares were down 1.35% at 12 p.m. London time Friday.

Optimism about Novo’s new drug adds to the pharma company’s winning streak as the demand for its drugs have sent Novo’s shares up by over 30% since the start of 2024, and 91% in the past year. Its two blockbuster injectables, Wegovy and Ozempic, catering to weight loss and Type 2 diabetes, respectively, have helped patients by reducing other health risks related to the heart and kidneys.

The new drug amycretin is set for a Phase II trial later this year, and is expected to launch within this decade.

“Novo has made clear that the amycretin molecule likely will form the foundation of the company’s rapidly growing pipeline,” Guggenheim analyst Seamus Fernandez said, according to Reuters.

Accelerating obesity drug race

While Novo is a leader in its own right, the market for obesity medications is amping up. Another Danish company—Zealand Pharma—reported “groundbreaking” mid-stage trial results on a weight loss drug last week. In the U.S., Eli Lilly’s Mounjaro and Zepbound have been Novo’s biggest challengers. Lilly is also working on an experimental pill comparable to amycretin, one that has reported body weight losses of 14.7% in 36 weeks in trials.

Novo has been trying to move fast as the race heats up, but oral versions of weight loss medication may take longer to launch and could come with a higher price tag.

The Danish giant has been seeing far more demand than supply, even though its drugs are available in limited markets, which has prompted the firm to try to boost availability and access to Wegovy.

The rivalry between pharma players is bound to come to the forefront as the next wave of weight loss drugs is already in the works. The obesity drug industry is highly lucrative, with analysts predicting it will hit $100 billion in value by the end of the decade.