Novo Nordisk (NVO) stock tumbled Monday after its experimental weight-loss drug, CagriSema, failed to top its rival from Eli Lilly (LLY) in a Phase 3 study.
↑ X NOW PLAYING The Weight-Loss Drug Market Is Hot. Which Medical Stock Will Win The Battle For Supremacy?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 noted that 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.
In premarket trades, Novo Nordisk stock skidded more than 8% to 79.46. That puts shares on deck to undercut their 50-day moving average once the market opens.
More to follow.
Follow Allison Gatlin on X/Twitter at @AGatlin_IBD.
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