Novo Nordisk Shares Fall as Trial Results Disappoint

Novo Nordisk shares plunged 19.35% on Friday after trial results for its experimental weight-loss drug CagriSema missed market expectations. 

The drug showed a 22.7% weight reduction in patients, below the anticipated 25%, shaking investor confidence in what was expected to be a next-generation obesity treatment. Shares had initially dropped over 24% before partially recovering, while competitor Eli Lilly saw its stock rise 5% after an earlier 10% jump in premarket trading.  

CagriSema, a combination of semaglutide and amylin analog cagrilintide, had been positioned as a superior alternative to Wegovy, Novo’s flagship obesity drug. The 68-week phase three trial involved 3,400 participants who were either obese or overweight with comorbidities. Novo highlighted that the drug had outperformed Wegovy in weight reduction and delivered results comparable to top-tier treatments, even though only 57% of patients reached the highest dose.   

Novo’s setback follows another blow earlier this month when Eli Lilly’s Zepbound outperformed Wegovy in a head-to-head trial. Zepbound demonstrated a 20.2% weight loss over 72 weeks, compared to Wegovy’s13.7%, further intensifying competition in the obesity drug market.  

What Does This Mean for Me?

Despite the challenges, Novo remains optimistic, with plans to submit CagriSema for regulatory approval by 2025. A second trial, targeting patients with type 2 diabetes, is set to report results in early 2024, leaving the market eagerly awaiting Novo’s next move in this highly competitive space.