Novo Nordisk shares fall on weight-loss drug trial

Core Insights - Novo Nordisk's shares declined over 9% following the announcement of the Redefine 2 trial results for its weight-loss drug CagriSema, which showed a 15.7% weight loss in patients on the highest dose compared to 3.1% in the placebo group [1][2]. Group 1: Trial Results - The Redefine 2 trial involved 1,206 participants with obesity or overweight and type 2 diabetes, with a mean baseline body weight of approximately 224 pounds [1]. - In the trial, 61.9% of patients received the highest dose of CagriSema, which combines GLP-1 agonist semaglutide and cagrilintide, a synthetic version of the hormone amylin [4]. - The results confirmed the superior efficacy of CagriSema in the target population, according to Martin Holst Lange, executive vice president for development at Novo Nordisk [6]. Group 2: Market Context - The market reacted negatively to the trial results, with shares of Novo Nordisk falling significantly, reflecting Wall Street's expectations regarding the drug's performance compared to existing products like Ozempic and Wegovy [2]. - Novo Nordisk's revenue exceeded Wall Street expectations in its latest fiscal quarter, but the company anticipates slower sales growth in 2025 due to increasing competition [7]. - In response to competitive pressures, Novo recently halved the cost of its weight-loss drug Wegovy for U.S. patients paying cash through its direct-to-patient online pharmacy [8]. Group 3: Future Plans - Novo Nordisk plans to present detailed results from both the Redefine 1 and Redefine 2 trials at a scientific conference in 2025 and aims to file for regulatory approval of CagriSema in the first quarter of fiscal year 2026 [5].