Novo Nordisk (NVO) reported its newest GLP-1 merchandise, CagriSema, provides roughly 22.7% weight discount, but that had not been ample to encourage financiers, triggering a sell-off of the provision.
“We are encouraged by the weight loss profile of CagriSema. This was achieved even though only 57% of patients reached the highest CagriSema dose,” mentioned Martin Holst Lange, govt vice chairman for improvement at Novo Nordisk, in a press release Friday.
The outcomes got here from a trial of nondiabetic adults with weight problems. A second late-stage trial for diabetics is underway, with outcomes anticipated within the first half of 2025.
Novo traded down larger than 20% Friday early morning, its biggest loss on condition that 2002. The CagriSema data elevated rivals, resembling Eli Lilly (LLY), whose provide bumped up larger than 6%.
The outcomes are considerably higher than these of Novo’s present GLP-1s, Ozempic for diabetes and Wegovy for weight reduction, which offer round 15% weight reduction. But Novo’s administration had been bullish on CagriSema, setting the bar at 25%.
“This is below the Street’s expectation of 25% and more comparable to the ~21% forZepbound It appears the protocol for the CagriSema trial included flexible dosing, and this led to only ~57% of patients reaching the highest dose of the product/contributed to the lower-than-expected avg weight loss,” JPMorgan analysts wrote in a observe to purchasers Friday.
The weight reduction supplied by CagriSema in Phase 3 trials beats present main merchandise for Novo however solely barely beats Lilly’s GLP-1s, Mounjaro for diabetes and Zepbound for weight reduction, which offer 21% weight reduction on common — which is why buyers aren’t impressed.
“The data are well-below expectations given NVO mgmt.’s weight loss efficacy bar of 25%,” Leerink Partners analyst David Risinger wrote in a observe to purchasers Friday.
JPMorgan analysts additionally famous in a separate observe Friday that Lilly’s candidate, retatrutide, which is in late-stage trials, might additional erode Novo’s lead.
yf-1pe5jgt”>FILE PHOTO: A view exhibits the brand of Novo Nordisk on the firm’s workplace in Bagsvaerd, on the outskirts of Copenhagen, Denmark, March 8, 2024. REUTERS/Tom Little/File Photo · Reuters / Reuters
“While shows up the procedure for the CagriSema test consisted of versatile application, and this brought about just ~ 57% of individuals getting to the greatest dosage of the product/contributed to the lower-than-expected avg weight reduction, Novo yf-1pe5jgtAs yf-1pe5jgt(* )information are well-below assumptions provided NVO mgmt.’s weight reduction effectiveness bar of 25%, ” the analysts wrote.
“>In addition, Lilly’s tablet candidate is within the trial stage, additional alongside than different opponents. If the drug, orforglipron, proves efficacious, it will additional Lilly’s lead within the weight-loss market.
