Novo Nordisk's CagriSema Drug Trial Results Disappoint

Novo Nordisk's shares plummeted by 27% following disappointing results from a late-stage trial of its obesity drug CagriSema, which led to an average weight loss of only 20.4%, falling short of the company's target of 25%. This setback raises concerns about Novo's ability to maintain its competitive edge in the lucrative weight-loss market, projected to grow significantly by 2030. Analysts noted that the results positioned CagriSema on par with Eli Lilly's Zepbound, already available on the market. Furthermore, only 57% of trial participants reached the highest dose, suggesting issues with patient tolerability and possible side effects. In response to the trial's outcomes, Novo plans to initiate a new trial in 2025 to explore the drug's weight-loss potential further. The market reaction resulted in a staggering $125 billion loss in Novo's market valuation, highlighting the high stakes involved in the weight-loss drug sector.