Novo’s Weight Loss Challenge: The CagriSema Setback

Novo Nordisk's experimental drug CagriSema showed a 22.7% weight reduction in a late-stage trial, below the expected 25%, impacting its stock value. This result challenges the company's future in the competitive obesity drug market, especially against Eli Lilly’s strong performing Zepbound.

Novo Nordisk faced a significant setback on Friday as its experimental obesity treatment, CagriSema, failed to meet expected weight loss targets in a crucial late-stage trial. Patients saw a 22.7% reduction in weight, falling short of the anticipated 25%, which spurred a marked decline in Novo's shares.

This disappointment complicates Novo's ambitions to present CagriSema as a formidable successor to its successful Wegovy, with hopes of outperforming Eli Lilly's Zepbound. The competitive landscape in the anti-obesity sector remains tight, and Novo's pipeline strength is now under scrutiny.

The trial involved about 3,400 participants with a BMI of 30 or higher, or a BMI of 27 with related health conditions, over a period of 68 weeks. While the drug combines semaglutide and cagrilintide to suppress hunger, Novo's share performance lags behind Eli Lilly, bringing further challenges in gaining market foothold.

(With inputs from agencies.)