Packing containers of Ozempic and Wegovy made by Novo Nordisk are seen at a pharmacy.
Hollie Adams | Reuters
Shares of Danish pharmaceutical big Novo Nordisk plummeted greater than 24% at one level on Friday after reporting ends in a late-stage trial for its experimental CagriSema weight reduction drug that missed expectations.
The maker of the wildly common Wegovy weight problems drug stated its new drug candidate helped sufferers cut back their weight by 22.7%, beneath the 25% it informed CNBC it had beforehand forecast.
The inventory had pared some losses to commerce down round 20% at 1:57 p.m. London time. Shares of rival weight problems drug maker Eli Lilly jumped 10% in pre-market commerce however got here off highs to commerce round 5% larger.
The trial outcomes deal a blow to expectations that CagriSema might change into a next-generation weight problems drug. The 2-drug injectable therapy combines semaglutide, the energetic ingredient in Wegovy, together with amylin analog Cagrilintide, a nascent type of weight reduction therapy.
In feedback to CNBC, nevertheless, Novo stated that CagriSema had outperformed Wegovy in weight discount and that its efficiency was “on par with best-in-class therapies.”
“We’re inspired by the load loss profile of CagriSema demonstrating superiority over each semaglutide and cagrilintide in monotherapy within the REDEFINE 1 trial. This was achieved although solely 57% of sufferers reached the best CagriSema dose,” Martin Holst Lange, government vp for Growth at Novo Nordisk, stated in a separate press launch.
“With the insights obtained from the REDEFINE 1 trial, we plan to additional discover the extra weight reduction potential of CagriSema,” he added.
The section three trial was primarily based on round 3,400 folks with weight problems, or who have been chubby with a number of comorbidities, and occurred over 68 weeks. It adopted a versatile protocol, which means sufferers might modify their dosage all through the trial. By the top, simply 57.3% of sufferers handled with CagriSema have been on the best dose.
Novo stated that topline and full outcomes shall be introduced subsequent yr and that it expects regulatory submission of the drug by the top of 2025. Outcomes from a second section 3 trial, REDEFINE 2, primarily based on adults with sort 2 diabetes who’re both overweight or chubby, are additionally anticipated through the first half of subsequent yr.
‘Efficacy according to expectations’
Soren Lontoft, pharma fairness analyst at Sydbank, informed CNBC that the share response on Friday was warranted for individuals who see the way forward for the market outlined solely by whole weight discount. Nevertheless, he pointed to rising segmentation inside the market — together with amongst those that can’t tolerate conventional GLP-1s and those that want lesser weight reduction — with some folks extra drawn to various choices.
“When you assume the weight problems market shall be outlined by a portfolio of medicines going ahead to deal with completely different wants then you definately should not be downbeat about these information,” he stated over the telephone.
In a observe Friday, J.P. Morgan acknowledged that whereas the outcomes have been disappointing, it continued to see robust potential for the nascent amylin analog drug group to emerge as the following section of weight problems therapy.
“Although the headline weight reduction for CagriSema combo was beneath expectations, doubtlessly as a result of sufferers modifying their dose down for the combo, we consider the Amylin mono headline information reveals efficacy according to expectations and good tolerability, which offer validation of Amylin mono as a therapy strategy,” the analysts wrote.
They added that the findings present help for related amylin analog medicine from competitor Zealand Pharma, whose therapy they described as doubtlessly extra efficacious than CagriSema. Zealand’s CEO Adam Steensberg informed CNBC in October that its Petrilintide drug was its “crown jewel” and that it was searching for a companion to carry it to market.
J.P. Morgan stated it now expects a Zealand Pharma partnership as quickly as subsequent yr.
It comes as competitors continues to warmth up within the weight reduction drug market, with extra gamers becoming a member of the fray amid surging demand.
Earlier this month, Novo confronted one other setback when a head-to-head scientific trial confirmed Eli Lilly’s Zepbound resulted in superior weight reduction in contrast with Wegovy.
The trial, sponsored by Lilly, confirmed Zepbound helped sufferers shed 20.2%, or roughly 50 kilos, on common after 72 weeks, whereas Wegovy helped them lose a lesser 13.7% on common over the identical interval. Novo stated on the time that it was awaiting the entire information.
