Novo Nordisk stock tumbled Monday after its experimental weight-loss drug, CagriSema, failed to top its rival from Eli Lilly in a Phase 3 study.
After 68 weeks, patients lost 15.7% of their body weight compared to a 3.1% loss for placebo recipients. That's comparable to Eli Lilly's blockbuster, Zepbound, Leerink Partners analyst David Risinger said in a report to clients. He said CagriSema is also more difficult than Zepbound to manufacture due to the type of device it uses, and Novo has yet to lay out its manufacturing plans.
William Blair analyst Andy Hsieh said CagriSema stood the best chance of outperforming Zepbound in this patient population — people with obesity and type 2 diabetes. But the results appears comparable to Zepbound.
"Therefore, we believe today's results are especially disappointing," he said in a client note.
Novo Nordisk stock skidded 9.4% to 78.95. Shares undercut their 50-day moving average. Lilly stock also slipped 4.6% to 829.76.
Novo Nordisk Stock: Testing A Combo
CagriSema is a combination of Novo's semaglutide and a drug called cagrilintide. Semaglutide, which Novo sells as the diabetes drug Ozempic and weight-loss med Wegovy, mimics the GLP-1 hormone to lower appetite and improve blood sugar markers. Cagrilintide mimics the amylin hormone. The pancreas secretes amylin alongside insulin.
In the study, CagriSema appeared safe and well tolerated, Novo Nordisk said in its news release. The most common side effects mirrored the GLP-1 class and included gastrointestinal problems. Notably, Novo used a flexible dosing schedule, allowing patients to change their dosage throughout the study. By the end of the test, 61.9% of patients were on the highest dose.
Novo expects to file for approval of CagriSema in the first quarter of 2026.
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