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Danish pharmaceutical company Novo Nordisk A/S (NOVO-B.KO) said Friday the European Commission has given market authorization for its closely-watched diabetes treatment Victoza in the 27 European Union member states.

Novo Nordisk will launch Victoza in the U.K., Germany and Denmark during the summer and in other European markets during the second half of 2009 and throughout 2010.

Victoza, also known as Liraglutide, belongs to a relatively new kind of diabetes drug class known as GLP-1 analogues. In contrast to conventional treatment with insulin, the drug doesn't risk pushing blood glucose dangerously low and it also helps patients to lose weight.

Analysts and investors have seen significant sales potential for the drug, which in April was recommended for European approval by a regulatory committee, only weeks after a Food and Drug Administration panel reached a split vote on whether to recommend it for a launch in the U.S.

It is still uncertain whether Victoza will be launched in that country although Novo Nordisk is in dialogue with the FDA and hopes for approval "within months."

Novo Nordisk Chief Scientific Officer Mads Krogsgaard Thomsen told Dow Jones Newswires his company will launch Victoza on the first European markets in "very few weeks".

He said the drug should gain a strong position on the market for diabetes treatment since it has proven in tests to be more efficient compared both with conventional insulin treatment and with Eli Lilly & Co's (LLY) and Amylin Pharmaceutical's (AMLN) competing GLP-1 analogue, Byetta.

Still, he said competition is bound to turn more intense. "All companies want to have a stake in the GLP-1 field," he said. "That is why it is important for us to have approval now, and market early."

A launch on the large European market is important for the company, although only worth about a third of an equivalent U.S. launch since it tends to be more difficult there to get reimbursement for expensive drugs, said Alm Brand analyst Michael Friis Jorgensen. He has a buy rating on Novo Nordisk.

According to Novo Nordisk, Victoza is around 50% more expensive than modern insulin at a cost per daily use of roughly EUR3.

Novo Nordisk said Friday's European approval doesn't change its expectations for its financial results in 2009. At 1022 GMT, the company's shares were down 0.5% at DKK290.50, against a 1% drop in the broader Copenhagen market.

The market authorization was in line with expectations and already reflected in Novo Nordisk's share price, which explained the lack of any significant market reaction Friday, said Alm Brand's Jorgensen.

 
   Company Web site: www.novonordisk.com 
 

-By Gustav Sandstrom, Dow Jones Newswires; +46-8-5451-3099; gustav.sandstrom@dowjones.com