Brussels (Brussels Morning Newspaper) – Novo Nordisk shares fell 24% on Friday in London trading after its weight-loss drug CagriSema failed to meet expectations in a critical trial, reaching 22.7% weight loss compared with a forecast of 25%. That triggered investor concerns, and by midday, the loss narrowed to 18.8%.
Shares of Danish pharmaceutical giant Novo Nordisk tanked more than 24% in Friday’s session after its experimental weight-loss drug, CagriSema, failed to meet hopes in a key late-stage test. The stock had shaved off some of its losses as of midday, falling 18.8% at 12:30 p.m. London time.
The highly anticipated results showed that CagriSema had cut the patients’ weight by 22.7%, which fell below the 25% weight loss benchmark that the company had previously forecasted to CNBC.
Eli Lilly shares increased 10% in pre-market trading before levelling off to rise 5%. Novo’s trial results also bruised investor confidence in CagriSema as a future generation of obesity treatments.
A Setback for Novo Nordisk’s Weight Loss Aspirations
CagriSema is a two-drug injectable therapy that combines semaglutide— the active ingredient in Novo Nordisk’s blockbuster Wegovywith amylin analogue cagrilintide, an emerging weight-loss treatment. Despite falling short of expectations, the company remained optimistic about the drug’s potential.
“We are encouraged by the weight loss profile of CagriSema, demonstrating superiority over both semaglutide and cagrilintide in monotherapy in the REDEFINE 1 trial,” said Martin Holst Lange, Executive Vice President for Development at Novo Nordisk, in a press release. He found that only 57% of patients reached the peak dose of CagriSema, and this should be improved further.
This phase three trial, involving nearly 3,400 patients with obesity or who were overweight with at least one comorbidity for 68 weeks, is to be completed next year. Novo Nordisk will present complete results and submit the drug for regulatory approval by the end of 2025.
Competitive Pressure from Eli Lilly
Novo just announced this on the back of a different blow earlier this month, which saw results from a head-to-head trial sponsored by Eli Lilly show its drug Zepbound outperformed Wegovy. Zepbound helped patients achieve an average weight loss of 20.2%, compared to Wegovy’s 13.7% over 72 weeks.
With increasing rivalry in the promising weight-reduction drug sector, CagriSema’s disappointing trial response will be expected to deter the momentum Novo has gained for a while. The Company will rely on the know-how of REDEFINE 1 and information from continuing phase three trial REDEFINE 2 across adult patients suffering from Type-2 Diabetes. Results for REDEFINE 2 are expected in mid-2025.
As obesity drug innovations accelerate, all eyes remain on how Novo Nordisk will navigate the challenges posed by these trial outcomes and its formidable rival, Eli Lilly.
Drop After Weight-Loss Drug Trial Falls Short
Novo Nordisk, one of the leading companies in the domain of diabetes care, faced a 24% dip in its shares following poor results from a pivotal test of its weight-loss medication, CagriSema. The drug had managed to induce a 22.7% weight loss in patients but did not meet the expected benchmark of 25%.Â
Investors grew concerned by the trial’s results, but the company is optimistic and focuses on the fact that there are continuous improvements made in the drug. This failure occurs at a time when Novo Nordisk faces increasing competition from Eli Lilly’s obesity medication, Zepbound, which has shown better performance in similar trials.
