Novo's CagriSema Trial Miss Meets Mixed Market Reactions

Novo Nordisk revealed disappointing results from its late-stage CagriSema trial, leading to a significant drop in its market value. The experimental obesity drug showed lower-than-expected weight loss, challenging Novo's position in the competitive anti-obesity market against rivals like Eli Lilly's Zepbound.

Novo Nordisk faced a market setback on Friday following lackluster results from its experimental CagriSema obesity drug trial. The Danish pharmaceutical giant saw its market value dip by as much as $125 billion after the drug's weight loss results fell below expectations.

The CagriSema trial, a crucial indicator for Novo's drug pipeline, showed a 22.7% weight loss among participants—short of the anticipated 25%. This setback comes amid fierce competition in the anti-obesity market dominated by rivals such as Eli Lilly's Zepbound.

As shares plummeted by up to 27%, investors and analysts highlighted the complexity of manufacturing CagriSema compared to Zepbound. Despite the disappointment, Novo remains optimistic, planning further trials and regulatory submission for CagriSema by 2025.

(With inputs from agencies.)