Shares of Novo Nordisk (NYSE:NVO) listed in Copenhagen dropped more than 10% in mid-morning trading on Monday after the pharmaceutical group revealed that its experimental obesity therapy, CagriSema, failed to meet a primary objective in a head-to-head open-label study.
The trial aimed to demonstrate that CagriSema performed at least as well as Eli Lilly’s competing treatment, Tirzepatide, in reducing body weight.
In a statement, Novo said the 84-week study compared a fixed-dose version of CagriSema with Tirzepatide and found that patients receiving CagriSema achieved average weight loss of 23%. Participants treated with Tirzepatide recorded weight reductions of 25.5%, according to the company.
“The trial did not achieve its primary endpoint of demonstrating non-inferiority on weight loss for CagriSema compared to tirzepatide after 84 weeks,” Novo said.
Novo Nordisk, whose blockbuster medicines Wegovy and Ozempic previously helped secure a leading position in the rapidly expanding obesity treatment market, has faced intensifying competition from Eli Lilly as well as telehealth providers offering cheaper copycat alternatives. The company’s shares fell 49% during 2025.
Last week, Novo announced plans to nominate two experienced pharmaceutical executives to its board, introducing new leadership figures following a broader governance reshuffle.
Lars Rebien Sorensen has taken over as board chairman, strengthening the influence of a figure who had previously criticized management for responding too slowly to competitive pressures in the U.S. market.
CagriSema has already been submitted to the U.S. Food and Drug Administration for approval in weight management, with Novo expecting a regulatory decision by late 2026.