Novo Nordisk Faces Setback with Monlunabant Trial Results

Novo Nordisk's stock dropped by more than 4% following disappointing results from a Phase 2a trial of its obesity pill, Monlunabant. The experimental drug, acquired through Inversago Pharmaceuticals, demonstrated only a 6.5% weight loss over 16 weeks, falling short of market expectations.

On Friday, shares of Novo Nordisk plummeted by over 4%, reaching their lowest point since August 10, following the release of unsatisfactory Phase 2a trial results for its experimental obesity medication, Monlunabant.

At 1330 GMT, stocks were down by 4.3%, hitting their lowest mark since August 8. The downturn followed the company's announcement of the trial outcomes for Monlunabant, a drug obtained via a $1 billion acquisition of Canadian biotech firm, Inversago Pharmaceuticals, last year. During a capital markets day in March, Novo Nordisk had predicted that the drug would achieve a weight loss of 15%, on par with its well-known obesity injection, Wegovy.

However, the headline results unveiled on Friday revealed a mere 6.5% weight loss after 16 weeks of once-daily use. Nordnet analysts remarked to Reuters that this result is "not what optimists are looking for," adding that competition in the market is heating up, leading to increased investor caution regarding Monlunabant's potential.

(With inputs from agencies.)