Novo's Victoza may gain on Bydureon delay

Novo has more time to woo patients to its rival drug Victoza--up to 20 months more, by some estimates.

Bad news for Eli Lilly could be good news for Novo Nordisk. Now that FDA has asked for more research on Bydureon, the long-acting form of Lilly and Amylin Pharamceuticals' Byetta, Novo has more time to woo patients to its rival drug Victoza--up to 20 months more, by some estimates.

Novo just launched the GLP-1 drug in January, and sales have so far been encouraging. The company even raised its revenue and profits forecast based in part on Victoza's early success. Six months after launch, the drug had already captured 27 percent of the U.S. market for that class of diabetes treatment. And Byetta is the only other drug in the class.

Victoza's momentum could have lost steam, however, if the FDA had gone ahead and cleared Bydureon for marketing. The proposed drug is a weekly injection, rather than a once-daily shot like Victoza, so it's seen as easier to use. Indeed, the fact that Victoza is once a day, versus twice a day for Byetta, has been a selling point for the Novo