Novo Nordisk reported disappointing results from its phase 3 trial of weight loss drug CagriSema on Friday, causing a significant drop in the company’s stock price. The trial aimed to beat Ozempic’s record for 16.1% weight loss among patients taking the drug over 68 weeks, but Novo fell short.
The primary endpoint was met, demonstrating statistically significant and superior weight loss compared to a placebo, but average weight loss over the 68-week trial was only 22.7%, missing the targeted 25%. However, CagriSema showed greater weight loss than Novo’s original recipe Ozempic and better results than Lilly’s Zepbound.
Novo’s management expressed optimism about the drug’s potential, but investors seem disappointed. The stock is down 20.8% as of 11:05 a.m. ET, while Lilly and Viking Therapeutics shares are up 4.4%. Considering Novo’s low price-to-earnings ratio of 29 and its expected annual earnings growth of over 21%, the company may be a value investor’s choice. This could be a good opportunity to buy Novo Nordisk stock at a discounted price.
Source: https://www.fool.com/investing/2024/12/20/novo-nordisk-destroyed-lilly-and-viking-stocks-up