What Happened
Shares of Novo Nordisk plummeted by over 16% following disappointing results from clinical trials of its new weight-loss treatment, CagriSema. The drug, which combines cagrilintide and semaglutide, was expected to demonstrate significant weight loss but fell short of investor expectations, leading to a sharp decline in the company’s stock value.
Why It Matters
The late-stage study involving 809 participants showed an average weight loss of 23% after 84 weeks, compared to 25.5% for Eli Lilly’s rival drug, Zepbound. This outcome means CagriSema did not achieve its primary endpoint of demonstrating non-inferiority in weight loss compared to Zepbound. Analysts have described the results as a significant setback for Novo Nordisk, which had positioned CagriSema as a strong competitor in the growing weight-loss drug market.
What’s Next
Following the trial results, analysts are questioning whether Novo Nordisk will proceed with the market launch of CagriSema. The company has lost approximately £350 billion in market value, returning to stock levels seen in June 2021. As competition intensifies with Eli Lilly’s Zepbound gaining traction, Novo Nordisk faces an uphill battle to regain its position in the obesity treatment sector.
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