What Novo Nordisk’s disappointing study results mean for the obesity drug market

The long-standing lead that Novo Nordisk had in the obesity drug market was called into question Friday when the company announced results of a closely watched candidate that fell short of expectations.

Novo reported that in a late-stage study, a next-generation obesity drug called CagriSema caused patients to lose 20% of their weight in all participants after 68 weeks – less than the company’s prediction of about 25% weight loss. Novo shares had plunged nearly 18% as of midday Friday.

Investors had high hopes for CagriSema – a combination of semaglutide, the active ingredient in popular treatments Ozempic and Wegovy, and cagrilintide, a treatment that activates amylin and calcitonin receptors. The news is likely to increase concerns about Novo’s ability to build on the success of blockbusters Ozempic and Wegovy.