FDA official announcements and press releases

Novo Nordisk Shares Dive 27% After CagriSema Fails to Hit 25% Weight Loss Target

Dec 20, 2024, 11:37 AM

Novo Nordisk, Europe's largest company by market capitalization, announced that its experimental next-generation obesity drug, CagriSema, demonstrated a weight loss of 22.7% in adults with obesity or overweight in the Phase 3 REDEFINE 1 trial after 68 weeks. The drug showed statistically significant and superior weight loss compared to placebo, which resulted in 2.3% weight loss, as well as semaglutide 2.4 mg (16.1%) and cagrilintide 2.4 mg (11.8%). However, only 57% of patients reached the highest dose of CagriSema, possibly due to tolerability issues, which may have impacted efficacy. The weight loss achieved fell short of the company's expectations of a 25% reduction, leading to investor disappointment. As a result, Novo Nordisk's shares plunged by up to 27%, wiping out over 1,000 billion kroner in market value, the most significant drop on record for the company. Meanwhile, competitors such as Eli Lilly saw their shares rise by up to 10%, as its obesity drug, ZepBound (tirzepatide), may now be seen as more competitive. Viking Therapeutics also experienced a share increase of 15%. The market reaction reflects concerns about Novo Nordisk's future competitiveness in the booming weight loss market and potential tolerability issues with CagriSema.