The company's new drug Novo NordiskCagriSema, during the research did not achieve its key goal, which was to demonstrate that it is no worse than the competing drug from Eli Lilly.
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Shares of the Danish company Novo Nordisk listed on the Copenhagen Stock Exchange fell sharply on Monday by as much as 16%, reaching the lowest level since June 2021. At the end of the session on Monday, the decline was almost 14%.
Tirzepatide is the active substance in Eli Lilly medicines: Mounjaro and Zepbound. On the other hand semaglutide is sold under the names Ozempic and Wegovy by Novo Nordisk.
Now the manufacturer of Ozempic was testing a new drug CagriSemawhich combines semaglutide and kagrilintide (an analogue of amylin, a hormone secreted in the pancreas).
Patients taking a 2.4 mg dose of CagriSema achieved a 23% weight loss. after 84 weeks, compared with 25.5 percent for the 15 mg dose of tirzepatide, Novo reported.
Even though the difference does not seem large, it means that Novo Nordisk has lost to its biggest rival. Investors reacted negatively to the results.
See also: Golden business and a dangerous obsession. The world has gone crazy about Ozempic
Drugs for obesity. Ozempic, Wegovy, Mounjaro, Zepbound. Novo Nordisk is racing against the competition
The study was the so-called an open-label study, meaning participants knew what treatment they were receiving. This structure could pose a risk of bias in favor of an established product over an experimental therapy, Novo's chief scientific officer, Martin Holst Lange, said in an interview with CNBC's Charlotte Reed.
Novo filed for U.S. Food and Drug Administration (FDA) approval of CagriSema late last year, with a decision expected in late 2026. The company has high hopes for the drug, which combines semaglutide and cagrilintide, another hormone secreted in the pancreas that affects appetite.
See also: Will obesity drugs help with Alzheimer's disease? Research is ongoing
A new weight loss drug. The manufacturer does not give up
Despite Monday's disappointing results, Novo CEO Mike Doustdar remained optimistic about CagriSema's potential.
“We strongly believe that CagriSema has the best weight management effectiveness of any product on the market today,” he said.
Novo said it is conducting further studies to test CagriSema, including higher-dose combinations.
But CagiSema's failure to meet the benchmark compared to Zepbound increases uncertainty, and the drug's commercial positioning becomes increasingly unclear, said Jefferies analyst Michael Leuchten.
CagriSema may account for 15-25 percent. Novo revenues by 2030
Monday's study result is another blow to the Danish drug manufacturer. The company also faces increasing competition, lower prices in the U.S. and the loss of exclusivity by Wegovy and Ozempic in some markets.
Source: CNBC
