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The valuation of Novo Nordisk climbed by more than $8.3 billion following clinical trial results showed that its oral anti-obesity medication achieved nearly as much body mass loss as its injectable counterpart.

Stock in the company rose by more than 4.5% on the trading day as investors became hopeful about its ability to regain market share in the face of growing rivalry from other manufacturers and lower-cost non-branded versions of GLP-1 drugs.

A recent clinical trial demonstrated that a daily pill version of the company’s injectable treatment led to significant reduction in body weight, with close to one in three trial subjects losing 20% or more of their body mass. Observed adverse reactions were comparable to those of the injection-based treatment.

It is the first oral GLP-1 medication submitted to the US Food and Drug Administration for review, and a decision is anticipated within the coming months. Production has already begun at the firm’s US facilities.

The development puts Novo Nordisk in direct competition with US rival its industry counterpart, which is likewise developing a daily obesity treatment tablet known as its oral candidate. Recent data from Eli Lilly showed that one in five patients achieved 20% or more of their body weight over a year-and-a-half period.

While injectable treatments have gained widespread acceptance, they remain expensive and frequently subject to limited availability. Pill forms tend to be easier to manufacture, keep, and take, and may possibly be offered at a more affordable price.

Financial analysts indicate that pill-based weight loss medications could generate yearly revenues reaching $10 billion, with some projections suggesting a peak value of up to twenty-five billion dollars.

Stocks of companies focused on GLP-1 medications have significantly beaten other pharmaceutical investments over the recent half-decade, reflecting strong investor interest in this growing sector.