Novo Nordisk's CagriSema Falls Short in Obesity Drug Trial

Novo Nordisk's trial for its obesity drug CagriSema resulted in a lower-than-expected weight loss of 22.7%, impacting its market value. Despite these results, Novo remains optimistic about further optimizing the drug. This development intensifies the competition with Eli Lilly in the anti-obesity market.

Novo Nordisk revealed on Friday that its next-generation obesity drug CagriSema led to a 22.7% weight reduction in patients during a late-stage trial, falling short of the anticipated 25%. The announcement significantly impacted Novo's market capitalization, reducing its value by as much as $125 billion.

The Danish company was banking on CagriSema as a potent successor to its successful drug Wegovy, aiming to surpass Eli Lilly's Zepbound, also known as Mounjaro. Investors had high expectations for the trial results as a gauge of Novo's strength in the competitive anti-obesity market.

Novo's shares plummeted by 27%, marking their lowest point since August 2023. Conversely, shares of its U.S. competitor Lilly rose more than 7% in pre-market trading, reflecting investor reactions to the trial data. Despite this setback, Novo remains committed to further exploring the drug's potential.