The Food and Drug Administration approved the weight loss drug Wegovy to treat an increasingly prevalent liver disease on Friday.

Novo Nordisk A/S's Wegovy received Food and Drug Administration approval to treat metabolic-associated steatohepatitis in adults with moderate to advanced scar tissue in the liver.

"It is expected that this market exclusivity will only last for a transitional phase before Eli Lilly also launches a product on the market," said Nordnet analyst Per Hansen.