Ultrasound Weight Loss: GE HealthCare and Novo Nordisk’s Play

Key Points

• GE HealthCare Technologies, a leader in ultrasound imaging technology, is collaborating with Novo Nordisk, a leading provider of GLP-1 treatments, on peripheral-focused ultrasound (PFUS) to regulate metabolic functions.
• PFUS has been shown to be effective in lowering blood glucose levels in mice.
• Novo Nordisk is still suffering semaglutide shortages as 25,000 new people a week are prescribed Wegovy therapy.

The advent of GLP-1 treatments has been a game changer in the medical sector for weight loss and chronic obesity. The GLP-1 market is currently dominated by semaglutide (Ozempic and Wegovy) produced by Novo Nordisk A/S NYSE: NVO and tirzepatide (Mounjaro and Zepbound) produced by Eli Lilly and Co. NYSE: LLY. The once-a-week injections are still in short supply despite costing over $1,000 a month. Eli Lilly’s Mounjaro sales surged over 114% YoY in its Q3 2024.

However, health insurers are becoming more reluctant about coverage, and people with anxiety over needle injections are still staying away. Among all the new therapies in studies, a novel approach to weight loss utilizing ultrasound is being developed by Novo Nordisk and GE HealthCare Technologies Inc. NASDAQ: GEHC.

Peripheral Focused-Ultrasound for Diabetes and Weight Loss

Traditional ultrasound uses high-frequency sound waves to create real-time images of internal organs and soft tissues. GE HealthCare Technologies and Novo Nordisk are collaborating to develop a new technology called peripheral-focused ultrasound (PFUS).

This technology uses highly focused high-frequency ultrasound to regulate the body’s metabolic functions. It’s a non-invasive bioelectronic medicine that has the potential to help manage chronic diseases like type 2 diabetes and obesity. PFUS stimulates nerve pathways to improve glucose metabolism in patients with diabetes. PFUS sends sound waves to activate parts of the nervous system to modulate certain nerve responses.

Novo Nordisk’s Expertise in Metabolic Disease Joins Forces with GE HealthCare

Initial research indicates promising results. A study showed that PFUS technology was successful in managing type 2 diabetes in mice by using ultrasound pulses to stimulate nerve pathways in the liver to help regulate glucose levels. The GE HealthCare collaboration with Novo Nordisk will build on the findings and utilize Novo Nordisk's expertise in metabolic disease treatment to fine-tune PFUS technology for human use.

Novo Nordisk's vice president and Head of Development, Martin Holst Lange, commented, “We look forward to exploring the potential impact this technology could have on treating people with type 2 diabetes and obesity, as significant unmet needs remain in these diseases in spite of recent advances in care. Although early, the possibilities of using ultrasound for therapeutic purposes are compelling, and we welcome our collaboration with GE HealthCare in this truly novel area."

GE HealthCare Ultrasound Division President Roland Rott added, “This collaboration with Novo Nordisk opens a path to evolve ultrasound from a means of screening and diagnosis into therapy, as well. We are eager to validate and further develop this potentially groundbreaking science as we strive to offer patients alternative treatment options for chronic diseases."

Novo Nordisk’s Combination Amylin Analog and GLP-1 Agonist Combo

While Novo Nordisk is experiencing drama sales growth, with Ozempic and Wegovy reaching 69% year-over-year (YoY) revenue growth, the company continues to grow its pipeline to cement its oligopoly status in the GLP-1 industry. Novo’s CagriSema is a once-a-week injection that combines cagrilinitide, a novel amylin analog, with semaglutide.

Amylin analogs slow down the rate at which food empties from the stomach into the intestines, thereby suppressing the release of glucagon. Glucagon is a hormone that raises blood sugar levels. It makes you feel fuller longer after meals, which also helps reduce overall caloric intake.

CagriSema demonstrated a significantly greater body weight loss in obese participants with type 2 diabetes. CagriSema users had a mean bodyweight reduction 3X more than just using Wegovy, 15.6% versus 5.1%, respectively. Against cagrilinitide alone, subjects lost 8.1% mean body weight. CagriSema essentially causes users to feel fuller longer to suppress appetite with the amylin analog while increasing insulin release and decreasing glucagon secretion with the GLP-1.

CagriSema Phase 3 Results Were Solid, But Market Sells the News

On Dec. 20, 2024, Novo Nordisk produced phase 3 clinical trial REDEFINE results with CagriSema. After 68 weeks, patients treated with CagriSema had a 22.7% weight loss compared to 11.8% with just cagrilinitide 2.4 mg and 16.1% with semaglutide 2.4 mg treatments.

Additionally, 40.5% of patients who received CagriSema lost 25% or more after 68 weeks, versus 6% with cagrilinitide, 16.2% with semaglutide, and 0.9% with placebo. Results of the REDEFINE 2 Phase 3 study in patients with type 2 diabetes are expected in the first half of 2025. Shares of NVO sold off 17% in reaction, likely due to the 22.7% weight loss instead of more patients reaching the 25% weight loss mark.

Novo Nordisk Is Losing the Battle With Eli Lilly Due to Shortages

Capacity restraints have been a concern as its 69% YoY revenue growth for obesity treatment pales in comparison to rival Eli Lilly’s 114% YoY revenue growth rate. Novo has to bolster its capacity to compete effectively. Novo’s stock is down 26.24% in the past 12 months and 8.52% in 2025 alone. Its revenue growth trajectory has declined from 43.78% YoY growth in Q4 2023 to 23.68% in Q1 2024, to 23.79% in Q2 and 22.53% in Q3 2024. Its PE ratio at 25.5 is below its 3-year median of 39.84, indicating it may be nearing the value play area for investors patiently waiting for a pullback.

Ozempic and Wegovy have had supply shortages since April 2022. According to Novo Nordisk, more than 25,000 new people start taking Wegovy every week, further exacerbating the supply shortage. Supply constraints are expected to persist through 2025. This is the main driver of compounded semaglutide sales soaring from providers like Hims & Hers Health Inc. NYSE: HIMS.