Novo Nordisk's Obesity Drug Trial Raises Questions Amid Market Drop

Novo Nordisk faces scrutiny after disappointing trial results for CagriSema, a next-gen obesity drug, caused a significant market valuation drop. Analysts question whether side effects limited dosage adherence. Novo plans a new trial for 2025 and promises more data in the coming year.

Novo Nordisk encountered financial tumult on Friday following its release of disappointing trial data for CagriSema, a next-generation obesity drug. The trial's results slashed the company's market value by up to $125 billion.

The clinical trial showed lower weight loss than expected, a setback for Novo, which aimed to replace its existing drug, Wegovy. Investors are puzzled by data showing that only 57% of trial patients reached the highest dose of CagriSema, sparking concerns about patient tolerability and side effects.

Analysts speculate on whether patients hit satisfactory weight loss early or suffered from adverse effects, such as nausea. Novo Nordisk intends to release comprehensive data at next year's medical conference, and a new trial is set for the first half of 2025.

(With inputs from agencies.)