Shares of Wegovy maker Novo Nordisk are rising after approval of the GLP-1 pill

Shares in Novo Nordisk rose over 7% on Tuesday after the Wegovy maker received approval for its GLP-1 pill, a world first.

The approval of Novo Nordisk’s GLP-1 pill by the US Food and Drug Administration gives the Danish pharmaceutical giant a head start over its US competitor Eli Lilly.

The pill’s starting dose of 1.5 milligrams will be available in early January at pharmacies and through select telemedicine providers with savings offers for $149 per month, the company said.

Under the agreement Novo Nordisk reached with its government last month, cash-paying patients will be able to access it for the same price through President Donald Trump’s direct-to-consumer website, TrumpRx. Drug prices have been the focus of attention this year as the U.S. seeks to reduce costs paid by consumers.

The approval caps a tumultuous year for Novo, marked by board tensions, supply chain bottlenecks, a bidding war against Pfizer and criticism over the implementation of its U.S. strategy.

Eli Lilly is expected to launch its own pill soon after seeking FDA approval.

However, Novo’s clinical data looks “fantastic,” Rajesh Kumar, head of European life sciences and healthcare equity research at HSBC, told CNBC’s “Squawk Box Europe” on Tuesday.

There are food and water restrictions, which could complicate prescription by primary care physicians, but its tolerability and effectiveness are better than Eli Lilly’s pill, Kumar said. “Novo may actually have an advantage, and it will entirely depend on how they go about it,” he added.

Lilly also reported positive results from a maintenance study in which patients switched directly from taking the company’s Zepbound injectable solution Novo NordiskHis rival shot Wegovy. This could help Lilly “retain a little bit of market share,” Kumar said. “That’s the thing we need to pay attention to,” he added.

—CNBC’s Annika Kim Constantino also contributed to this report.