Novo Nordisk (NVO) Drops 3.97% on Mixed CagriSema Trial Results

On June 23, 2025, Novo Nordisk's stock experienced a 3.97% drop in pre-market trading.

Novo Nordisk recently disclosed the complete data from two Phase III clinical trials for its new weight loss drug, CagriSema. The results showed promising weight loss and metabolic improvements, but the drug had a higher incidence of gastrointestinal side effects compared to the placebo group. This outcome, while consistent with earlier partial data, did not fully meet market expectations, leading to stock price fluctuations. Additionally, the company recently underwent a leadership change, with CEO Lars Fruergaard Jorgensen being dismissed.

At the American Diabetes Association annual meeting in Chicago, Novo Nordisk presented detailed findings from a 68-week clinical study. Participants who were overweight or obese without diabetes and received CagriSema treatment lost an average of 23% of their body weight, while those with type 2 diabetes lost 15.8%. In comparison, Eli Lilly's similar drug, Tirzepatide, achieved a 22% weight loss in a 72-week trial.

Despite the positive efficacy data, the safety profile of CagriSema raised concerns. Nearly 80% of participants experienced gastrointestinal reactions such as nausea, vomiting, and constipation, significantly higher than the placebo group. The trial also reported a higher rate of severe adverse events in the treatment group, although the company emphasized that most side effects were mild to moderate and transient. Notably, 6% of participants discontinued treatment due to adverse events, compared to 3.7% in the placebo group.

Novo Nordisk plans to submit CagriSema for regulatory approval in the first quarter of 2026, with an expected launch in early 2027. The company is also conducting additional studies to explore potential cardiovascular benefits. The competitive landscape for obesity treatments is intense, and CagriSema will face direct competition from Eli Lilly's GLP-1/GIP dual-target drug if approved.