Novo Nordisk (NVO) reported its latest GLP-1 product, CagriSema, showed an average of 22.7% weight loss in a trial of nondiabetic adults with obesity. However, this result wasn’t enough to convince investors, leading to a sell-off of the stock.
The company is encouraged by the weight loss profile, but its expectations were lower than those of analysts and investors, who had predicted a 25% weight loss. CagriSema’s performance fell short of that mark, with only 57% of patients reaching the highest dose.
Novo Nordisk now faces increased competition from Eli Lilly (LLY), whose stock rose after the news. The company is awaiting results from a second late-stage trial for diabetics, which are expected in 2025.
Investors were disappointed by CagriSema’s results, which fell short of expectations and didn’t surpass current leading products such as Ozempic for diabetes and Wegovy for weight loss. Analysts predict that Lilly’s GLP-1 candidate, retatrutide, could further erode Novo Nordisk’s lead in the market.
Source: https://finance.yahoo.com/news/novo-nordisk-stock-sees-biggest-loss-in-more-than-20-years-on-cagrisema-results-160338156.html