Investors Seek Clarity on Novo Nordisk’s Next-Gen Obesity Drug CagriSema

LONDON/SAN FRANCISCO (Reuters) – Novo Nordisk faces investor scrutiny over its next-generation obesity drug candidate, CagriSema, following unclear trial results that negatively impacted its share prices in December. The pharmaceutical giant believes CagriSema could outperform its existing blockbuster weight-loss injection, Wegovy, but investors are concerned about its potential to lead in the competitive obesity drug market against Eli Lilly.

Interviews with five patients who participated in the trial or a separate late-stage study revealed that while the weekly injection helped them lose weight rapidly, they experienced significant side effects such as nausea, constipation, and fatigue. Novo Nordisk reported in December that the most common adverse events were gastrointestinal, mostly mild to moderate, and diminished over time. The company declined to comment on the story, citing the regulatory quiet period before its quarterly results on Wednesday.

The trial data showed that patients who adhered to the CagriSema treatment plan achieved an overall weight loss of 22.7% after 68 weeks, with 40.4% losing 25% or more. This was lower than the expected 25% weight loss, leading to a $125 billion loss in Novo’s market value. Only 57.3% of patients reached the highest dose, but the reasons for this were not explained.

Investors and analysts are seeking more clarity on factors affecting Novo’s shares, hoping for more information at the quarterly results. However, Novo may be limited in what it can disclose as it prepares to release full data and trial protocol at a scientific conference later this year.

Patients interviewed by Reuters reported varying experiences with CagriSema. One participant lost 29% of her body weight over 68 weeks but experienced fainting during the first six months. Another participant in an ongoing trial reported severe nausea, fatigue, and brain fog after injections but has lost about 18% of her weight. Despite the side effects, she considers the drug life-changing but hopes to find a maintenance dose that reduces these effects.

Novo Nordisk plans to start a new trial by June, aiming to address the concerns and provide more detailed information about CagriSema’s efficacy and side effects.