Novo Nordisk shares declined on Monday after the company reported that its next-generation weight-loss drug, CagriSema, helped obese or overweight adult patients with type 2 diabetes reduce their weight by 15.7% after 68 weeks.
The stock dropped around 6.5% in Copenhagen, marking its biggest intraday decline since December 20.
Novo’s stock has declined 37% over the past year, with concerns about its long-term competitiveness in the weight-loss market.
Meanwhile, shares of rival Eli Lilly, which produces the competing drug Zepbound, rose 1.2% following the news.
The CagriSema trial
The trial involving 1,206 participants with obesity or overweight and type 2 diabetes showed that 89.7% of patients on CagriSema achieved at least 5% weight loss after 68 weeks, compared to 30.3% in the placebo group.
Novo Nordisk noted that in the latest trial, patients could select their dosage, and fewer than two-thirds opted for the highest dose after 68 weeks.
A previous CagriSema obesity study, which disappointed investors last year, also saw a similar trend.
Under the trial’s flexible protocol, 61.9% of patients reached the highest dose by the end.
CagriSema, a combination of cagrilintide and semaglutide, resulted in a 15.7% weight loss among those who adhered to treatment, compared to 3.1% with placebo. Across all participants, weight loss averaged 13.7% for CagriSema and 3.4% for placebo.
The safety profile was consistent with the GLP-1 receptor agonist class, with gastrointestinal issues being the most common adverse events, generally mild to moderate and diminishing over time.
The results fell short of the company’s earlier forecast of 25% weight loss for CagriSema patients. In a separate late-stage trial published in December, the drug showed a weight reduction of 22.7%.
Novo Nordisk is developing CagriSema as a treatment for adults who are overweight or obese and for those with type 2 diabetes. The company expects to file for regulatory approval in the first quarter of 2026.
The weight loss drug race
Novo Nordisk is relying on its new shot, CagriSema, to compete with Eli Lilly’s Zepbound in the growing weight-loss drug market.
Michael Shah, an analyst with Bloomberg Intelligence, noted that the latest results appeared “broadly on par” with Zepbound, raising concerns about whether CagriSema offers enough differentiation.
Shah added that the trial design, which allowed patients to choose their own highest dose, may have understated the shot’s potential effectiveness.
Novo said it aims to seek regulatory approval for CagriSema in the first quarter of next year.
Jefferies analysts noted that individuals with diabetes typically lose 30% to 35% less weight than those with only obesity in clinical trials.
They had hoped that CagriSema’s added compound—alongside Novo’s existing drugs Ozempic and Wegovy—might reduce this gap in absolute weight loss.
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