Photo Credit: Getty Images
Shares of Novo Nordisk plunged Monday after the company said its experimental obesity therapy CagriSema did not match the weight-loss performance of Eli Lilly's blockbuster drug Zepbound in a closely watched trial.
In the 84-week Phase 3 study, patients receiving CagriSema lost about 20% of their body weight, compared with roughly 24% for those treated with Zepbound. The gap was too wide for researchers to declare the Novo drug "non-inferior," a key statistical benchmark meant to show comparable effectiveness.
The results mark another setback for Novo as it attempts to defend its position in the booming obesity market. Zepbound, which contains tirzepatide, has rapidly gained ground in the U.S., overtaking Novo's earlier generation treatments built around semaglutide.
CagriSema combines semaglutide, the active ingredient in Wegovy, with cagrilintide, a hormone analog designed to enhance appetite suppression. Executives had hoped the dual mechanism would deliver superior weight reduction and help the company regain momentum after earlier trial data fell short of internal expectations.
Novo extended patient follow-up in the head-to-head study from 72 to 84 weeks, aiming to capture additional weight loss after signs participants had not yet plateaued. However, the final numbers were largely consistent with prior findings, offering little improvement.
Company executives emphasized that the 20% reduction aligns with labeling data for competing drugs and argued CagriSema could still secure a competitive position if approved. Novo has submitted the therapy to U.S. regulators, with a decision anticipated later this year.
Investors appeared unconvinced. Analysts described the outcome as a significant blow, questioning how Novo will differentiate CagriSema in an increasingly crowded field. The stock's double-digit decline adds to steep losses over the past year as competition intensifies and pricing pressures mount across the obesity treatment landscape.
