With a new endorsement from the FDA, Novo Nordisk’s Wegovy has picked up its third indication and become the second drug approved in a severe form of fatty liver disease. | The FDA has signed off on an accelerated approval for Novo Nordisk's Wegovy to treat certain adults with metabolic-associated steatohepatitis.

The FDA clearance sets Novo’s medicine up a market battle with Madrigal Pharmaceuticals’ fast-selling Rezdiffra.

Novo Nordisk said on Friday the U.S. Food and Drug Administration has granted accelerated approval for its weight-loss drug Wegovy to treat a serious liver condition called metabolic dysfunction-associated steatohepatitis,