New Ozempic CagriSema falls short in drug trials, Novo Nordisk shares plummet

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The logo of the Danish pharmaceutical company Novo Nordisk is pictured at their headquarters in Bagsværd outside Copenhagen, Denmark on February 1, 2017.

The logo of the Danish pharmaceutical company Novo Nordisk is pictured at their headquarters in Bagsværd outside Copenhagen, Denmark on February 1, 2017.
Picture: Liselotte Sabroe (Getty Images)

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Novo Nordisk (NGO-20.55%) released mixed clinical trial results for its potential Ozempic successor on Friday, leaving Wall Street disappointed.

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The pharma giant, known for its blockbuster diabetes drug Ozempic, said its experimental diabetes and weight loss medicine CagriSema did not live up to expectations. The drug did not achieve the expected average weight loss of 25% that the company and analysts had expected. Instead, patients in phase 3 clinical trials lost an average of 22.7% of their body weight after 68 weeks on the medication.

In comparison, the highest dose of Wegovy, Novo Nordisk’s current weight loss drug on the market, resulted in a average weight loss of 15% after 68 weeks in clinical trials. Meanwhile, patients taking the highest dose of Eli Lilly’s (LLY+4.12%) rival drug, Zepbound, obtained over 20% weight loss after 72 weeks.

Novo Nordisk shares fell over 20% on Friday morning following the news.

CagriSema belongs to the class of drugs known as GLP-1 or incretin drugs, which were made popular by Ozempic. These drugs mimic gut hormones that regulate blood sugar and reduce appetite.

Morgan Stanley (MS+2.06%) analysts predict the global market for these drugs will reach $105 billion by 2030. This is why several pharmaceutical companies are racing to develop more powerful weight loss drugs.

Novo Nordisk bet that by mimicking more hormones it could produce greater weight loss. CagriSema combines semaglutide – the active ingredient in Ozempic and Wegovy – with cagrilintide, a dual amylin and calcitonin receptor agonist, hence the name CagriSema.

Still, the trial yielded some promising results. Novo Nordisk reported that 40.4% of patients taking CagriSema achieved a weight loss of 25% or more during the 68-week trial period.

The company is expected to reveal the results of another Phase 3 trial of the drug in the first half of 2025.

Eli Lilly and Viking Therapeutics (VKTX+5.01%), which is also developing next-generation weight loss drugs, saw their shares rise 5% and 3%, respectively, on Friday.