Novo Nordisk's Setback: CagriSema's Disappointing Trial Results Shake Market Value

Novo Nordisk announced underwhelming results in a trial for its obesity drug CagriSema, causing its market value to drop by $125 billion. The trial showed 22.7% weight loss, below the expected 25%. This setback affects its competitive position against Eli Lilly's Zepbound in the obesity drug market.

Novo Nordisk faced a major setback on Friday as it reported disappointing results for its experimental obesity drug CagriSema in a late-stage trial. The underwhelming data led to a massive $125 billion slash in the company's market value, sparking concerns about its future in the competitive anti-obesity drug market.

The trial revealed that CagriSema resulted in a 22.7% weight loss, falling short of the 25% expectation set by Novo. This comes as a significant blow to the company's ambition to position CagriSema as a successor to its popular Wegovy drug, and more potent than Eli Lilly's rival treatment, Zepbound.

Novo shares plummeted by 27% following the announcement, marking one of the largest single-day declines for a European firm, while rival Lilly saw a 7% rise in pre-market trading. Despite the trial's disappointing results, experts suggest CagriSema may still find commercial success if tolerability and dosage issues are addressed in future trials.

(With inputs from agencies.)