Novo Nordisk’s Weight Loss Drug Disappoints, Shares Plummet
A Setback for Obesity Treatment
Shares of Novo Nordisk, the Danish pharmaceutical giant, took a drastic hit on Friday, plummeting over 24% after the company reported underwhelming results from a late-stage trial for its experimental weight loss drug, CagriSema. The maker of the popular Wegovy obesity drug had high hopes for its new candidate, but it failed to meet expectations.
CagriSema Falls Short
The trial results showed that CagriSema helped patients reduce their weight by 22.7%, below the 25% forecast. Although the stock recovered slightly, trading down around 17.9% by midday London time, the news dealt a significant blow to expectations that CagriSema could become a next-generation obesity drug.
A Two-Drug Combo
CagriSema is a two-drug injectable treatment that combines semaglutide, the active ingredient in Wegovy, with amylin analog Cagrilintide, a new form of weight loss treatment. Despite the disappointing results, Novo Nordisk remains optimistic, stating that CagriSema outperformed Wegovy in weight reduction and demonstrated “on par with best-in-class treatments.”
A Silver Lining
Martin Holst Lange, executive vice president for Development at Novo Nordisk, highlighted the positive aspects of the trial, saying, “We are encouraged by the weight loss profile of CagriSema demonstrating superiority over both semaglutide and cagrilintide in monotherapy in the REDEFINE 1 trial.” The company plans to further explore the additional weight loss potential of CagriSema.
Rival Eli Lilly Sees Gains
Meanwhile, shares of rival obesity drug maker Eli Lilly jumped 10% in pre-market trade, although they later dipped to trade up 5% by midday London. The news may have boosted Eli Lilly’s prospects, but the obesity treatment landscape remains highly competitive.
Stay Tuned for Updates
This is a developing story, and we will provide updates as more information becomes available.
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