Novo Nordisk's Obesity Drug Quest: High Stakes and New Challenges

Novo Nordisk's experimental obesity drug CagriSema shows similar side effects to its GLP-1 drugs, with potential for 25% weight loss. Data from a late-stage trial is expected by end of 2024. The company's shares could rise or fall by 20% based on the trial's success.


Devdiscourse News Desk | Updated: 06-11-2024 17:08 IST | Created: 06-11-2024 17:01 IST
Novo Nordisk's Obesity Drug Quest: High Stakes and New Challenges
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Novo Nordisk, a leading Danish pharmaceutical company, has announced that its experimental obesity drug CagriSema exhibits side effects akin to its existing GLP-1 drugs. These drugs are already available in the market, promising significant weight loss. According to Martin Holst Lange, Novo Nordisk's head of development, CagriSema could deliver up to 25% weight loss, outperforming the company's current obesity injection, Wegovy, which results in around 15% weight loss.

The pharmaceutical giant plans to release trial data from the late-stage trials of CagriSema, a combination of two drugs, by the end of 2024. CagriSema targets gut hormones similarly to Wegovy but also focuses on a pancreatic hormone known as amylin. Analysts suggest that this data is crucial for Novo Nordisk's investment case in the competitive pharmaceutical landscape, as companies race to surpass weight loss results achieved by competitors like Eli Lilly's Zepbound.

Meanwhile, Novo's investment strategy faces potential fluctuations; its share price might rise or fall by as much as 20% based on the success of CagriSema. Additionally, the company's share prices dipped nearly 5% following disappointing Phase 2a trial results of another obesity drug, monlunabant. While the drug, acquired through the $1 billion purchase of Inversago Pharmaceuticals, revealed unexpected psychiatric side effects, a new Phase 2b trial is set to test lower dose strengths, continuing Novo's exploration into effective obesity treatments.

(With inputs from agencies.)

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