The owner of Wegovy and Ozempic, Novo Nordisk, faced a major setback when its new weight-loss drug, CagriSema, was labeled “obsolete” after underwhelming clinical trials. This led to a sharp drop in its shares, losing 16.5% on Monday—marking the lowest level since June 2021.
CagriSema combines two components: cagrilintide, which mimics a hormone that helps control appetite, and semaglutide, the active ingredient in Wegovy and Ozempic. The goal was to achieve greater weight loss than Wegovy. However, a recent study showed that CagriSema resulted in an average weight loss of only 23% over 84 weeks. This fell short of the expected 25% and compared unfavorably to Eli Lilly’s drug, Zepbound, which showed 25.5% weight loss.
Analyst Søren Løntoft Hansen from AL Sydbank noted, “This is something of a swing and a miss.” The results meant CagriSema did not prove to be a better option than its competitors, creating uncertainty about its future.
Novo’s shares, which were once buoyed by strong sales of diabetes and weight-loss medications, have plummeted nearly 60% over the past year. Adjustments to profit and sales estimates reflect its waning grip on this growing market. Analysts had already reduced sales forecasts earlier this year, cutting projections from $80 billion to $75 billion by 2032.
Social media reactions have also been critical, with users expressing frustration over the drug’s performance compared to expectations. Some saw it as a reflection of broader issues in drug development, where the race for effective weight-loss solutions can lead to exaggerated claims.
Despite the disappointing results, Novo’s CEO, Mike Doustdar, defended CagriSema, insisting it will still have a strong market presence when it eventually launches. He mentioned that it will be the first amylin-based product on the market.
Moving forward, Novo plans to conduct additional studies with a higher dose of CagriSema to achieve better results. They’ve submitted the drug for regulatory approval in the U.S., hoping for a positive response. The pressure is on as the competition heats up in the weight-loss pharmaceutical landscape.
For further insights on the evolving weight-loss market and pharmaceutical trends, you can read this article on weight-loss drugs.
