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CagriSema, a drug that Novo Nordisk had hoped would become its next generation weight-loss aid, has failed to meet expectations in late-stage trials, sending shares of the pharmaceutical giant tumbling as much as 24% at one point in premarket trading on Friday morning.

The test drug combines semaglutide , the active ingredient in its blockbuster Wegovy, with cagrilintide , a dual approach that suppresses the appetite and manages how the body processes food. This combination is designed to be more effective than treatments using semaglutide alone.

What happened with the trial?

The Phase 3 trial, conducted over 68 weeks and involving approximately 3,400 participants with obesity or overweight conditions and one or more comorbidities, was a crucial step in demonstrating the drug’s potential, with the goal of achieving 25% weight loss in trial participants.

But the results, while promising, fell short at weight loss of 22.7% .

Additionally, competitor Eli Lilly’s experimental drug retatrutide showed even stronger results with a 24% reduction after just 48 weeks, further highlighting the competitive advantage of Lilly’s offerings—and helping drive Lilly’s stock (NYSE: LLY) up 7% in premarket trading Friday morning.

What’s next for CagriSema?

Despite these setbacks, Novo Nordisk said it remains committed to CagriSema. Results from the REDEFINE 2 trial , focusing on adults with type 2 diabetes who are obese or overweight, are expected in early 2025.

Meanwhile, the company plans to submit the drug for regulatory approval by the end of next year, signaling that it sees potential for further refinement and success in the competitive obesity drug market.

“We are encouraged by the weight loss profile of CagriSema, demonstrating superiority over both semaglutide and cagrilintide in monotherapy in the REDEFINE 1 trial,” Martin Holst Lange, Novo’s executive vice president for development, noted in a statement. “This was achieved even though only 57% of patients reached the highest CagriSema dose.”

Shares of Novo Nordisk A/S (NYSE: NVO) peaked in June of this year and have been on a generally downward slope since. The stock has fallen more than 26% in the last six months.

This post originally appeared at fastcompany.com
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