Novo Nordisk's Weight Dilemma: CagriSema Results Shake Markets

Novo Nordisk's CagriSema obesity drug trial showed a 22.7% weight reduction, falling short of the anticipated 25%, resulting in a $125 billion market value loss. Analysts expressed concerns over tolerability and efficacy, but some remarked the stock reaction was disproportionate. Novo plans further trials to address issues.

In a significant market shake-up, Novo Nordisk's latest obesity drug, CagriSema, posted a 22.7% weight loss in trials, falling below the expected 25% mark. The announcement sent shockwaves through the market, wiping off as much as $125 billion from the company's value.

Analysts and investors alike expressed mixed reactions. Markus Manns from Union Investment, a stakeholder in the company, described the trial results as disappointing, comparing them to Zepbound. Meanwhile, Jefferies analysts highlighted concerns around patient adherence, suggesting tolerability issues.

Despite the shortfall, some experts, including DNB Analyst Rune Majlund Dahl and Redburn Atlantic's Simon Baker, believe the market's overreaction may stabilize over time. Novo Nordisk remains committed to addressing the challenges through further trials, affirming CagriSema's potential.

(With inputs from agencies.)