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Novo Nordisk (NVO-8.66%) released clinical trial results for its potential Ozempic successor on Monday, disappointing Wall Street for the second time.
The pharmaceutical giant, known for its blockbuster diabetes drug Ozempic, announced on Monday that patients taking its experimental diabetes and weight-loss drug, CagriSema, lost an average of 15.7% of their body weight after 68 weeks in a phase 3 clinical trial.
This was the second of four planned phase 3 studies of the drug. The first trial, called REDEFINE 1, tested CagriSema in people who were obese or overweight but did not have type 2 diabetes. In that study, patients lost an average of 22.7% of their body weight after 68 weeks.
The second study, REDEFINE 2, focused on 1,206 patients who were obese or overweight and had type 2 diabetes. Neither trial met the company’s or analysts’ expectations of a 25% average weight loss.
Novo Nordisk had hoped that by mimicking multiple hormones, CagriSema would deliver greater weight loss. The drug combines semaglutide — the active ingredient in Ozempic and Wegovy — with cagrilintide, a dual amylin and calcitonin receptor agonist, hence the name CagriSema.
For comparison, the highest dose of Novo Nordisk’s Wegovy resulted in an average weight loss of 15% after 68 weeks in clinical trials. Meanwhile, patients taking the highest dose of Eli Lilly’s (LLY-3.42%) rival drug, Zepbound, achieved over 20% weight loss after 72 weeks.
Novo Nordisk’s stock fell more than 8% on Monday morning following the news.
“We had believed that adults living with both overweight or obesity and type 2 diabetes represent the patient segment for which CagriSema has the best chance to outperform Zepbound. Therefore, we believe today’s results are especially disappointing,” William Blair analyst Andy Hsieh wrote in a note.
CagriSema belongs to a class of drugs known as GLP-1 or incretin medications, popularized by Ozempic. These drugs mimic gut hormones that regulate blood sugar and reduce appetite.
Morgan Stanley (MS-6.66%) analysts anticipate the global market for these drugs will reach $105 billion by 2030. As a result, several pharmaceutical companies are racing to develop more powerful weight-loss medications.
Novo Nordisk currently plans to file for regulatory approval for CagriSema in the first quarter of 2026.
“We look forward to bringing this second pivotal trial to regulatory authorities with the aim of making this next-generation therapy available to the millions of patients in need,” said Martin Holst Lange, executive vice president for development at Novo Nordisk, in a press release.
Meanwhile, Viking Therapeutics (VKTX-2.15%) and Amgen (AMGN+2.30%), which are also developing next-generation weight-loss drugs, saw their stocks rise 3.5% and 1%, respectively, on Monday.