The new Ozempic CagriSema fails in the drug study, Novo Nordisk shares plummet

Novo Nordisk (NVO-20.69%) released mixed clinical trial results for its potential Ozempic successor on Friday, leaving Wall Street disappointed.

The pharmaceutical giant, known for its blockbuster diabetes drug Ozempic, announced that its experimental diabetes and Weight loss medication CagriSema fell short of expectations. The drug did not achieve the average weight loss of 25% predicted by the company and analysts. Instead, patients in the phase 3 clinical trial lost an average of 22.7% their body weight after 68 weeks of taking the medication.

For comparison, the highest dose of Wegovy, Novo Nordisk’s current weight loss drug on the market, resulted in one average weight loss of 15% after 68 weeks in clinical trials. Meanwhile, patients taking the highest dose of Eli Lilly (LLY+4.19%) Rival drug, Zepbound, outdated 20% weight loss after 72 weeks.

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

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

Morgan Stanley (MS+2.13%) Analysts anticipate the global market for these drugs will reach $105 billion by 2030. For this reason, several pharmaceutical companies are trying to develop more effective weight loss drugs.

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

Nevertheless, the experiment produced some promising results. Novo Nordisk reported that 40.4% of patients taking CagriSema achieved weight loss of 25% or more over the 68-week trial period.

The company is expected to report results from a second Phase 3 trial of the drug in the first half of 2025.

Eli Lilly and Viking Therapeutics (VKTX+5.50%), which is also developing next-generation weight-loss drugs, saw its shares rise 5% and 3%, respectively, on Friday.