Novo Nordisk's shares plummeted by up to 27%, erasing approximately $125 billion from its market value, following the release of underwhelming results from a late-stage trial of its experimental obesity drug, CagriSema. The drug achieved an average weight reduction of 22.7% among participants, falling short of the company's anticipated 25% target.
The trial encompassed around 3,400 individuals with a body mass index (BMI) of 30 or higher, or a BMI of 27 accompanied by weight-related health conditions. Notably, only 57% of participants reached the highest dosage level of CagriSema, raising concerns about the drug's efficacy and patient adherence.
In response to these findings, Novo Nordisk plans to initiate a new trial in the first half of next year to further investigate CagriSema's weight-loss potential. The company aims to submit the drug for regulatory approval by late 2025, despite the current setback.
The market reacted swiftly to the news, with Novo Nordisk's shares experiencing one of the most significant single-day declines for a European company. Conversely, shares of U.S. competitor Eli Lilly, whose obesity injection Zepbound demonstrated nearly 23% weight loss in trials, rose by more than 7%, highlighting the intense competition in the obesity drug market.
Analysts expressed disappointment, with some describing the results as a "worst-case scenario" for Novo Nordisk. Concerns were raised about the drug's manufacturing complexity and its comparability to existing treatments. Despite this, Novo Nordisk remains optimistic about CagriSema's future, emphasizing plans for further trials to enhance its efficacy and secure a competitive position in the rapidly expanding obesity treatment market.
