Novo Nordisk’s stock plunged over 20% this morning, shaken by disappointing trial results for its obesity drug, CagriSema. The drug showed a 22.7% weight loss over 68 weeks, falling short of the company’s 25% target. This news has rattled investor confidence, leaving the market in shock.
Competitor Eli Lilly, however, is reaping the benefits. Lilly’s shares jumped 5%, as attention turned to its rival drug, Zepbound. Investors seem to see Lilly as the new frontrunner in the lucrative weight-loss drug market.
Novo Nordisk’s REDEFINE 1 phase 3 trial included 3,417 participants and showed statistically significant weight loss compared to placebo. But the results failed to meet the lofty expectations analysts had placed on CagriSema, once thought to be capable of generating over $20 billion in annual sales.
The fallout raises concerns about Novo Nordisk’s ability to stay ahead in the competitive weight-loss sector. With Zepbound delivering more promising outcomes, Novo Nordisk’s future dominance looks increasingly uncertain. The weight-loss market just became a battleground.
Europe’s largest stock Novo Nordisk down 20% this morning. pic.twitter.com/Fpvm4e4eB0
— Godzilla Trader 🦖 (@David_Tracey) December 20, 2024
Sources:
https://www.yahoo.com/news/m/85b1f6f8-2bf0-3e20-892a-cf73eeae8ce5/novo-nordisk-stock-crashes.html