Novo Nordisk's Obesity Pill Falls Short in Phase 2a Trial

Novo Nordisk's shares dropped nearly 5% after their experimental obesity pill, monlunabant, showed underwhelming Phase 2a trial results. The pill, acquired through a $1 billion deal with Inversago Pharmaceuticals, reported only a 6.5% weight loss, falling short of the expected 15%. Despite this, the company plans a larger Phase 2b trial.

Novo Nordisk faces a setback as shares dropped nearly 5% following disappointing Phase 2a trial results of its experimental obesity pill, monlunabant. The Danish drugmaker, which acquired the drug through a $1 billion purchase of Inversago Pharmaceuticals, revealed headline results showing only a 6.5% weight loss after 16 weeks, significantly below the 15% target.

Market reactions to the once-daily pill's performance were stark, with shares dipping to their lowest point in over five weeks. Nordnet analysts noted that these results fall short of market expectations, increasing investor caution about the drug's potential amidst rising competition in the obesity drug market.

Despite the less-than-stellar results, Novo Nordisk plans to proceed with a larger Phase 2b trial focused on dosage and safety, expected to begin next year. This aligns with the company's strategy to stay competitive in a rapidly expanding market, which analysts predict could see annual global sales reach $150 billion by the early 2030s.

(With inputs from agencies.)