Shares of Veru Inc. (NASDAQ: VERU) soared more than 160% during Thursday morning trading after the company announced a clinical supply agreement with Novo Nordisk AS (NYSE: NVO).
Under the agreement, Veru will evaluate its drug candidate enobosarm alongside Novo Nordisk’s Wegovy in the Phase 2b PLATEAU trial, targeting older adults with obesity.
Veru disclosed in a filing with the U.S. Securities and Exchange Commission that it will sponsor and conduct the Phase 2b PLATEAU study independently, while Novo Nordisk will supply Wegovy at no cost for use in the trial.
As part of the arrangement, Veru will share study-related updates with Novo Nordisk, covering trial design, protocol amendments, and safety data throughout the study period.
Veru confirmed that it will retain full global development and commercialization rights to enobosarm, preserving its control over the drug’s future commercial potential.
The company also granted Novo Nordisk a right of first negotiation for any future agreement involving enobosarm in combination with Novo Nordisk GLP-1 therapies, including Wegovy.
Canaccord described the Novo Nordisk agreement as a significant milestone for Veru, saying it validates interest in enobosarm from one of the leading players in the obesity market.
The firm added that it continues to view Veru’s clinical data as compelling and believes enobosarm could emerge as a key differentiator in obesity treatment, reiterating its Buy rating and $25 price target on the stock.
The Phase 2b PLATEAU trial is evaluating enobosarm in approximately 200 adults aged 65 and older with obesity who are beginning treatment with Wegovy, aiming to assess whether the drug can preserve muscle mass and physical function.
The study is designed to determine whether enobosarm can help patients overcome the weight-loss plateau commonly observed with GLP-1 therapies, a persistent challenge in the obesity treatment landscape.
Veru expects interim data on lean mass and fat mass in the first quarter of 2027, with topline results anticipated in the fourth quarter of 2027.
Retail sentiment on Stocktwits around Veru trended in the “extremely bullish” territory, with message volumes reaching “extremely high” levels following the announcement.
VERU stock is up 154% year-to-date, while NVO stock is down 14% over the same period, highlighting the diverging fortunes of the two companies heading into this partnership.
