📰 Novo Nordisk Shares Drop as Weight-Loss Drug Trial Fails
Shares plunge after trial results show only marginal improvement over Eli Lilly's Mounjaro.
Novo Nordisk NVO 0.00%↑ , experienced a sharp 27% drop in its share value on Friday following disappointing results from its latest obesity drug, CagriSema. Despite high expectations, the drug failed to meet the ambitious goal of achieving a 25% average weight loss in clinical trials, delivering a 22.7% reduction instead.
The results place CagriSema only slightly ahead of Mounjaro, a competing drug from Eli Lilly, which achieved an average weight loss of 22.5%. Novo Nordisk attributed the shortfall to only 57% of trial participants receiving the highest dosage of the drug.
“We are encouraged by the weight-loss profile of CagriSema,” said Martin Holst Lange, executive vice-president for development at Novo Nordisk. However, the setback underscores the fierce competition in the $24 billion weight-loss market, which has expanded significantly in recent years.
CagriSema combines semaglutide, the active ingredient in Novo Nordisk’s Wegovy and Ozempic, with cagrilintide, a hormone that enhances feelings of fullness. The trial involved 3,417 participants, with 40% achieving the 25% weight-loss target.
As Novo Nordisk continues to vie for market leadership, CEO Lars Fruergaard Jørgensen emphasized the importance of innovation. “CagriSema is a next-generation product and has the potential to be best in class,” he stated in November.
The company faces mounting pressure to regain momentum after earlier challenges, including disappointing results for an experimental weight-loss pill. The competition with Eli Lilly, which has seen robust growth with its diabetes and obesity treatments, remains intense.
While the trial results dampened investor confidence, Novo Nordisk remains optimistic about the drug's long-term potential in a rapidly evolving market.
Source: Novo Nordisk Investor Relations, Reuters, CNBC
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