Novo Nordisk Plunges 6.64% on Drug Side Effects, Leadership Change

On June 23, 2025, Novo Nordisk's stock experienced a significant drop of 6.64% in pre-market trading, reflecting investor concerns and market reactions to recent developments.

Novo Nordisk recently disclosed the complete data from two Phase III clinical trials for its novel weight loss drug, CagriSema. While the drug showed promising results in weight loss and metabolic improvements, the high incidence of gastrointestinal side effects compared to the placebo group fell short of market expectations. This news, coupled with the recent leadership change at the company, has contributed to the stock's volatility.

During the American Diabetes Association's annual meeting in Chicago, Novo Nordisk presented detailed findings from a 68-week clinical study. Participants with obesity or overweight without diabetes who received CagriSema treatment achieved an average weight loss of approximately 23%, while those with type 2 diabetes and overweight lost about 15.8%. These results, while impressive, were slightly lower than those of Eli Lilly's similar drug, Tirzepatide, which achieved a 22% weight loss in a 72-week trial.

Additionally, Novo Nordisk has terminated its collaboration with Hims & Hers Health due to concerns over the telehealth company's illegal mass compounding and deceptive marketing practices. This decision has further impacted investor sentiment, as the partnership was seen as a strategic move to expand the reach of Novo Nordisk's weight loss drugs.