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Novo Nordisk’s shares fell sharply on Monday following disappointing results for its new obesity treatment, dealing a new blow to the embattled Danish drugmaker.
Caigrisema, Novo’s new weekly injection, led to an average weight loss of 23 percent after 84 weeks, while tirazepate, the active ingredient in Eli Lilly’s blockbuster drugs Monjaro and Zepbound, led to a 25.5 percent loss.
After this news, Novo shares fell more than 15 percent.
Its latest obesity drug includes a new molecule, cagrilintide, as well as semaglutide, the active ingredient in its blockbuster drugs Ozempic and Vegovy.
The late-stage trial results put further pressure on Novo, which has fallen behind Lilly in the key US market.
This month, Novo, once Europe’s largest company by market capitalization, announced it expected net sales and profits to decline by 13 percent this year, partly attributing it to declining U.S. prices tied to a deal with the Trump administration to cut drug costs for consumers.
It also faces patent expirations for Vegov and Ozempic in markets such as Canada, Brazil, India and China this year, as well as stiff competition from cheaper copycat versions in the US.
Novo Chief Executive Mike Doustdar, who has been in the post since August, described the price cuts in the US as painful.
Novo shares have nearly halved in the last 12 months and trade two-thirds below their June 2024 peak.
Novo submitted Caigrisema to the U.S. Food and Drug Administration for approval in December based on earlier trial results and a decision is expected later this year.
