Novo Nordisk's $125 Billion Setback: CagriSema's Trial Disappointment

Novo Nordisk reported disappointing results from a late-stage trial for its obesity drug CagriSema, causing its market value to drop significantly. The drug's weight loss outcome fell short of expectations, impacting the competitive edge against Eli Lilly's Zepbound. Further trials are planned to explore CagriSema’s potential.

Novo Nordisk faced a significant market setback on Friday following the release of underwhelming trial results for its experimental obesity drug CagriSema, an event that wiped as much as $125 billion from its market value. The trial's weight loss results did not meet the company's expectations, setting back ambitions to outpace Eli Lilly's Zepbound.

Investors were closely watching the trial data as Novo Nordisk aimed to solidify its drug pipeline following the success of Wegovy in the competitive obesity market. CagriSema's weight loss impact stood at 22.7%, below the 25% target, causing Novo's shares to plunge by up to 27%.

The results were deemed a 'worst-case scenario' by some investors, with claims that CagriSema offers no distinct advantage over Zepbound but is more complex to produce. The company plans further trials for CagriSema and aims for regulatory submission by late 2025.

(With inputs from agencies.)