Shares of Eli Lilly (NYSE:LLY) rose 2.8% to $1,037 in premarket trading Monday after rival Novo Nordisk (CSE:NOVOb) reported that its experimental obesity treatment CagriSema failed to meet a key clinical trial objective.
Novo Nordisk said the study did not demonstrate that CagriSema was non-inferior to Eli Lilly’s Tirzepatide in reducing body weight. Trial data showed patients receiving CagriSema achieved an average weight reduction of 23% over 84 weeks, compared with 25.5% for Tirzepatide.
The Danish pharmaceutical company plans to launch a higher-dose trial of CagriSema in the second half of 2026, with a decision from the U.S. Food and Drug Administration expected later that year.
U.S.-listed shares of Novo Nordisk dropped 14.8% to $40.41 in premarket trading following the announcement.
J.P.Morgan said that although CagriSema could eventually provide Novo Nordisk with a more competitive product, it may struggle to capture market share from Eli Lilly. The bank noted that Eli Lilly’s Zepbound is already firmly positioned in the market after the latest results and expects the company to maintain a longer runway for market share expansion beyond 2026.