Novo Nordisk Shares Plunge 21% After Obesity Shot Trails Rival's 23.6% Efficacy
Novo Nordisk shares fell 21% for their steepest weekly drop since August after data showed its next-generation obesity shot CagriSema delivered 20.2% weight loss versus Eli Lilly’s 23.6%. Analysts downgraded the shares and warned patent cliffs could force CEO Mike Doustdar to expand beyond diabetes and obesity treatments.
1. Significant Share Decline
Novo Nordisk stock dropped 21% this week, marking its steepest weekly slide since August and erasing nearly all gains achieved since the 2021 US approval of Wegovy. The decline compresses a fivefold rally built over several years, intensifying pressure on the company’s leadership.
2. CagriSema Versus Tirzepatide Efficacy
Trial data for Novo Nordisk’s next-generation obesity shot CagriSema showed an average 20.2% weight loss, trailing Eli Lilly’s tirzepatide at 23.6%. The differential has raised questions about CagriSema’s competitive positioning as obesity treatment competition heats up.
3. Analyst Downgrades and Strategic Pressure
At least five analysts downgraded the shares following the data update, citing limits on CagriSema’s commercial outlook. These firms warned that patent expirations in 2032 and advancing rival pipelines could compel CEO Mike Doustdar to diversify beyond the core diabetes and obesity franchise.