UPDATE 1-Novo Nordisk obesity drug results underwhelm investors

* High-dose liraglutide only slightly better than 1.8 mg

* Placebo-adjusted weight loss 4 pct at 3 mg dose

* Shares fall 4 pct on worries over obesity potential

(Adds analyst comments, latest shares)

COPENHAGEN, March 18 (Reuters) - Overweight and obese diabetes patients given high doses of Novo Nordisk's drug liraglutide achieved 6 percent weight loss in a clinical trial, only slightly above the loss seen in those on a lower dose.

The Danish group, the world's biggest insulin producer, said on Monday it was pleased with the results. But investors worried about where it left Novo's strategy for a premium-priced high-dose obesity treatment and shares in the company fell 4 percent.

Novo Nordisk said subjects with Type 2 diabetes achieved 6 percent weight loss with 3 milligrams of liraglutide in the advanced Phase III trial compared to 5 percent in those on 1.8 mg.

Patients given a placebo also lost 2 percent of their weight, so the placebo-adjusted loss for the higher dose was 4 percent, analysts noted.

"Five and 6 percent is on the low side in efficacy, but it is important to note that it is enough to be approved by the FDA (U.S. Food and Drug Administration)," said Michael Friis Jorgensen, senior analyst at Alm Brand.

He said the share price reaction was harsh but reflected broader uncertainty about Novo's prospects, following an earlier setback for new diabetes drug Tresiba in the key U.S. market.

"We are pleased about the outcome of this trial and look forward to getting the results from the two remaining trials in the SCALE programme," said Mads Krogsgaard Thomsen, chief science officer at Novo.

Soren Lontoft Hansen, an analyst at Sydbank, endorsed Thomsen's view, arguing the results were "robust" - but an analyst at a major bank, who asked not to be quoted before he published on the subject, said the results were only "so so".

The fact there was just a marginal benefit from using the highest dose was a particular concern for the company's high-price strategy, he added.

Novo wants to turn the injected drug - already on the market as a treatment for Type 2 diabetes under the brand name Victoza - into a multibillion-dollar-a-year product for the seriously obese.

While some in the industry are sceptical about using so-called GLP-1 diabetes drugs such as liraglutide to fight obesity, Thomsen believes the approach can offer cost-effective benefits.

Glucagon-like peptide-1, or GLP-1, drugs work by stimulating insulin release when glucose levels become too high. Their ability to induce weight loss is an added benefit, since type-2 diabetes is linked to obesity.

Novo Nordisk expects to complete the two remaining Phase III

trials in the so-called SCALE clinical trial programme by mid-2013.

When used in diabetes as Victoza, liraglutide is given at daily doses of either 1.2 or 1.8 mg. Novo, however, has been betting on a higher dose to produce greater weight-loss in the obese.

Novo Nordisk shares were down 4.2 percent at 1245 GMT, underperforming a 0.4 percent fall in a European drugs sector index .

(Reporting by Johan Ahlander, Stine Jacobsen and Ben Hirschler; Editing by Tom Pfeiffer)

((johan.ahlander@thomsonreuters.com)(+46 707 211027)(Reuters Messaging: johan.ahlander.reuters.com@reuters.net))

Keywords: NOVONORDISK/

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INTERVIEW-Elan says investors unmoved by Royalty Pharma offer

DUBLIN, March 4 (Reuters) - The vast majority of investors at Elan do not view a $6.6 billion approach by U.S. investment firm Royalty Pharma as worthy of discussion, the Irish drugmaker's chief executive said.

Elan announced on Monday that it would give shareholders 20 percent of the royalty rights for multiple sclerosis drug Tysabri and Elan Chief Executive Kelly Martin told Reuters that this was not a response to Royalty's approach last week.

"We simply don't view the Royalty indication of interest as credible. The vast majority of our investor base simply don't view Royalty's indication as worthy of any discussion period," Martin told Reuters in a telephone interview.

"I wish Royalty well, they can do what they need to do but we're not in any discussions with them at all on any topic and we don't see any need to have those discussions."

(Reporting by Padraic Halpin; Editing by Anthony Barker)

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UPDATE 1-Royalty Pharma plans to tap Elan investors on offer -source

* Royalty has not received response from Elan

* Biggest shareholder is Johnson & Johnson

(Adds Royalty Pharma declined to comment, updates share price, analyst comment)

By Jessica Toonkel

NEW YORK, Feb 26 (Reuters) - New York-based investment firm Royalty Pharma does not want to take "no" for an answer to its $6.6 billion offer for Irish drugmaker Elan Corp .

The company plans to spend the next few weeks calling Elan shareholders about its offer made on Feb. 18, according to a source familiar with the situation.

Royalty Pharma, which buys royalty streams of patented drugs and whose portfolio includes rheumatoid arthritis treatments Humira and Remicade, is turning to Elan's investors because it has received no formal response from the company about its offer, said the source, who wished to remain anonymous because of not being allowed to speak to the media.

Elan's biggest shareholder is Johnson & Johnson with an 18 percent stake.

An Elan spokesman declined to comment, as did Johnson & Johnson. A Royalty Pharma spokesman did not return a request for comment.

Royalty Pharma's offer, worth $11 per Elan share, came just days after Elan announced it had sold its 50 percent interest in multiple sclerosis drug Tysabri for $3.25 billion plus future royalty payments to U.S. partner Biogen Idec.

As a result of the Tysabri sale, Elan announced on Friday that it would return $1 billion to shareholders and make acquisitions with the rest of the $3.25 billion raised from the deal. Elan did not disclose the Royalty Pharma offer, which was not a formal bid.

Elan, in a statement on Monday, said Royalty Pharma's bid was an "indicative, conditional, proposal which may or may not lead to an offer being made for the entire issued share capital of the Company".

Elan also called the Royalty Pharma bid "highly opportunistic", given that shareholders had not had the opportunity to assess the full benefits of the Tysabri sale.

However, Royalty Pharma does not think Elan's management had the experience to make acquisitions, the firm said in its statement announcing its proposed offer on Monday.

Still, Royalty Pharma may have a tough time buying Elan given its $11-a-share offer, wrote Corey Davis, an equity analyst for Jefferies, in a note on Tuesday.

Royalty Pharma will have to get closer to $20 a share if it wants to buy the company, wrote Davis, who has a "buy" on Elan.

Elan's stock on Tuesday closed slightly above the offer price at $11.03, a 7 percent increase from Friday's close on the New York Stock Exchange.

(Reporting By Jessica Toonkel; Editing by Maureen Bavdek and Dale Hudson)

((Jessica.toonkel@thomsonreuters.com)(646-223-7882)(Twitter:

@jtoonkel)(Reuters Messaging: jessica.toonkel@thomsonreuters.com))

Keywords: ROYALTYPHARMA ENDO/

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