:max_bytes(150000):strip_icc()/GettyImages-2252640055-01c4e0eab26d4816a699286b52e2e503.jpg "Novo Nordisk Stock Tumbles Monday to Its Lowest Point in Nearly 5 Years. Here’s Why")
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Key Takeaways
- Novo Nordisk shares plunged Monday after the Ozempic and Wegovy maker’s newest drug trial results came in short of expectations.
- Novo Nordisk’s CagriSema, its next-generation weight-loss drug, led patients to lose less weight over 84 weeks than tirzepatide, the active ingredient in rival Eli Lilly’s Mounjaro and Zepbound.
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The weight-loss drug wars took a fresh turn on Monday.
Shares of Novo Nordisk (NVO) were down over 15% in recent trading after the Danish drugmaker announced the results of a clinical trial for its new weight-loss drug that came in short of expectations.
Novo Nordisk said that among a group of 809 people, the average weight loss for a patient taking its in-development drug CagriSema was about 23% of a patient’s body weight after 84 weeks. That was lower than the 25.5% mark for those in the trial that took tirzepatide, the active ingredient in Eli Lilly’s (LLY) Mounjaro and Zepbound.
The result marks the latest CagriSema trial to drag on sentiment surrounding the Ozempic and Wegovy maker’s stock amid growing worries about competition from rival Eli Lilly.
Why This Matters to Investors
Novo Nordisk and Eli Lilly’s stocks have diverged over the last year as Eli Lilly’s sales continued to accelerate while Novo Nordisk’s have slowed. Monday’s trial results could be taken as another signal that Novo Nordisk is falling behind in the weight-loss drug race.
Earlier this month, Eli Lilly said it expects another solid year of sales growth, while Novo Nordisk warned a number of factors could lead to a sales decline this year.
Separately, Eli Lilly on Monday announced a new product: a version of its injectable drug Zepbound that contains four doses of the medication in one injector pen, enough for a one-month supply.
With Monday’s drop, Novo Nordisk shares hit their lowest point in nearly five years. The shares have lost more than half their value in the last 12 months. Eli Lilly shares, which rose nearly 4% Monday morning, have gained about 19% in the last year.
