Novo Nordisk Shares Plunge After Weight-Loss Drug Trial Falls Short

The company's experimental CagriSema drug achieved lower-than-expected results in a pivotal trial, raising concerns about its competitiveness in the obesity drug market.

Novo Nordisk's CagriSema drug achieved an average weight loss of 22.7% in a Phase 3 trial, below the company's target of 25%.
The trial results wiped as much as $125 billion off Novo Nordisk's market value, marking one of the largest one-day sell-offs for a European company.
Only 57% of patients in the trial reached the highest dose of CagriSema, raising questions about the drug's tolerability and long-term potential.
Eli Lilly, a key competitor, saw its stock rise as its Zepbound drug maintained a competitive edge with similar efficacy and simpler manufacturing processes.
Novo Nordisk plans to start a new trial in 2025 to optimize CagriSema's dosage and further explore its weight-loss potential.