Josh White Sharecast News
20 Dec, 2024 11:43 20 Dec, 2024 11:40

Novo Nordisk shares slide despite promising weight loss trial results

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Novo NordiskSharecast graphic / Josh White

Novo Nordisk has announced promising results from its REDEFINE 1 phase three trial of CagriSema, a combination of cagrilintide and semaglutide designed for weight loss in adults with obesity or overweight and comorbidities.

The Danish pharmaceutical company said the 68-week trial showed that CagriSema led to significantly greater weight loss than its individual components or placebo, underscoring its potential as a leading treatment in the burgeoning obesity drug market.

In the study, participants treated with CagriSema achieved an average weight reduction of 22.7% when assuming full adherence to the regimen, compared to 11.8% with cagrilintide alone, 16.1% with semaglutide alone, and 2.3% with placebo.

When assessed under broader real-world conditions, weight loss averaged 20.4%, still markedly superior to the comparator groups.

Additionally, 40.4% of participants using CagriSema lost 25% or more of their body weight, compared to just 16.2% with semaglutide, 6.0% with cagrilintide, and less than 1% with placebo.

Despite the positive outcomes, Novo Nordisk's shares fell sharply following the announcement, as the results fell slightly short of investor expectations for a 25% average weight loss.

Analysts reportedly saw that as a potential vulnerability as the company faced increasing competition from rivals, notably US pharma giant Eli Lilly, in a weight-loss market expected to grow to $100bn by 2030.

Novo Nordisk said CagriSema was well tolerated, with mild-to-moderate gastrointestinal side effects consistent with other GLP-1 receptor agonists.

The company said it was planning to release additional data from the REDEFINE 2 trial, focusing on patients with type-2 diabetes, in 2025.

Pending regulatory approval, CagriSema could be launched by 2026, bolstering Novo’s portfolio in a rapidly evolving therapeutic area.

“We are encouraged by the weight loss profile of CagriSema demonstrating superiority over both semaglutide and cagrilintide in monotherapy in the REDEFINE 1 trial,” said Martin Holst Lange, Novo Nordisk’s executive vice-president for development.

“This was achieved even though only 57% of patients reached the highest CagriSema dose.

“With the insights obtained from the REDEFINE 1 trial, we plan to further explore the additional weight loss potential of CagriSema.”

At 1240 CET (1140 GMT), shares in Novo Nordisk were down 19.27% in Copenhagen, at DKK 600.

Reporting by Josh White for Sharecast.com.

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