Novo Nordisk's Weighty Setback: CagriSema's Underwhelming Trial Results

Novo Nordisk revealed that its experimental obesity drug, CagriSema, achieved a 22.7% weight reduction in a late-stage trial, falling short of its 25% target. This news led to a sharp 27% drop in Novo's stock, highlighting the competitive pressure from Eli Lilly's rival drug, Zepbound.

Novo Nordisk announced a setback for its new obesity drug, CagriSema, after late-stage trials showed patients losing 22.7% of their weight—below the 25% target. Consequently, the company's market value took a hit, plunging by $125 billion.

The results come amid fierce competition in the obesity drug market, where Novo aims to rival Eli Lilly's Zepbound. Investors responded negatively, causing Novo shares to fall by 27%, reaching their lowest levels since August 2023.

The Phase III trial involved approximately 3,400 participants with a BMI of 30 or higher. Despite encouraging signs, only 57% of patients reached the highest dose. Novo plans to explore further weight loss potentials. Meanwhile, CagriSema's adverse effects were mainly mild to moderate gastrointestinal issues.

(With inputs from agencies.)