Novo Nordisk's CagriSema Falls Short of Eli Lilly's Tirzepatide in Weight Loss Trial
Novo Nordisk's experimental weight loss drug CagriSema achieved 23% weight loss after 84 weeks compared to 25.5% with Eli Lilly's tirzepatide in a head-to-head Phase 3 trial, sending Novo shares down 15% in Copenhagen.
Novo Nordisk shares sank after the newest generation of its weight loss shot, CagriSema, failed to show it was more effective than tirzepatide, the weight loss and diabetes drug sold by Eli Lilly. In a head-to-head trial, patients taking Novo's drug lost 23% of their body weight after 84 weeks compared to 25.5% with tirzepatide.
Novo Nordisk shares tumbled 15% in Copenhagen trade following the announcement. Eli Lilly shares rose 4% in premarket trade.
The results came from a late-stage Phase 3 trial. Novo Nordisk did say CagriSema appeared to have a safe and well-tolerated profile.
The CEO told analysts on a conference call that they still have high hopes for CagriSema. "You have to go back to how products are sold, they are sold according to their label," he said. "There is an abnormality with this trial and how the competitor product has done, it's neither in their label or their own trials."
Novo Nordisk said it is exploring additional trials to test CagriSema, including higher-dose combinations. The drugmaker also said it will start a separate Phase 3 study studying CagriSema at a higher dose in the second half of the year.
Novo Nordisk is still awaiting a Food and Drug Administration decision on CagriSema, a once-a-week injectable, which it expects late in the year. That label will be based on earlier trials, the CEO pointed out.
The results are a hit to Novo, which was the first to bring a GLP-1s to market but has now been outsold by Eli Lilly and faces increased competition from new competitors planning to bring weight loss drugs to market. Earlier this month, Novo predicted that its sales would decline by between 5% and 13% in 2026 amid rising competition.
Novo Nordisk said this year's sales will fall up to 13% excluding currency swings - despite the launch of an oral version of its weight-loss drug Wegovy - thanks to U.S. government price negotiations as well as competition.
The company recently debuted its Wegovy pill, the first GLP-1 pill for weight loss to come to market. Early uptake has been strong but Lilly's pill, orforglipron, is also coming to market later this year.