Novo Nordisk's Setback: Obesity Drug Trial Results Raise Questions

Novo Nordisk's experimental obesity drug, CagriSema, failed to meet expected weight loss results in a late-stage trial, wiping $125 billion off the company's market value. Only 57% of participants reached the highest dose, raising concerns about patient tolerability and potential trial design changes.

Novo Nordisk faced significant challenges on Friday as shareholders demanded clarity on why many patients in a late-stage trial of its obesity drug CagriSema failed to reach the highest dose. The release of disappointing trial data resulted in a $125 billion decrease in the company's market valuation.

The experimental drug showed lower-than-expected weight loss results, with Novo reporting an achieved weight loss of 22.7% over 68 weeks, below the anticipated 25%. Only 57% of trial participants reached the highest dose, raising questions about patient tolerability.

Investors and analysts speculated on possible side-effects hampering dose increases, with some suggesting a link to higher gastrointestinal issues. Novo plans to start a new trial in 2025, as uncertainty looms over the impact of side effects versus patient satisfaction with weight loss.

(With inputs from agencies.)