MW Ozempic parent's new weight-loss drug works better, but not quite good enough

By Tomi Kilgore

New trial data showed CagriSema led to 'superior' weight loss, but at a rate much less than original expectations of 25%

Shares of Novo Nordisk A/S were getting hit hard in early Monday trading, after the parent of Ozempic and Wegovy, the diabetes and obesity treatments, revealed data showing that its new weight-loss drug candidate showed "superior" results compared with taking nothing. But the results fell short of the original expectations.

The company said a Phase 3 trial showed that after 68 weeks, those who took CagriSema achieved a weight loss of 15.7%, compared with a weight loss of 3.1% for those taking a placebo. Achieving a superior result over the placebo was a primary endpoint of the trial.

CagriSema, which is a combination of cagrilintide 2.4-milligram and semaglutide 2.4-mg doses, is being developed so people have a better choice for a weight-loss drug when the patents on Ozempic and Wegovy expire in 2031 and 2031, respectively.

The problem for investors is that the company had previously said CagriSema could provide a potential weight loss of about 25%. In December, the stock had plunged after another Phase 3 trial showed CagriSema achieving a weight loss of 22.7%.

Novo Nordisk's stock $(NVO)$ sank 6.6% in premarket trading.

Shares of Eli Lilly and Co. $(LLY)$, which makes the rival weight-loss drug Zepbound, declined 1.2%.

Novo Nordisk also said the latest trial showed that 89.7% of those taking CagriSema achieved weight loss of at least 5% after 68 weeks, compared with 30.3% of those taking a placebo.

The company said it still expects to file for regulatory approval of CagriSema in the first quarter of 2026.

Novo Nordisk and Eli Lilly are currently engaged in a price war over their weight loss drugs. Novo said last week it was cutting the price of Wegovy to $499 a month for all dose strengths for people who don't have insurance, a week after Lilly announced a plan to cut prices on some doses to $499, but also to lower prices for lower doses.

Novo Nordisk's stock has tumbled 20.2% over the past three months through Friday, while Lilly shares have gained 8.8% and the S&P 500 index SPX has slipped 4.4%.

-Tomi Kilgore

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March 10, 2025 07:59 ET (11:59 GMT)

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