LONDON (Reuters) – Novo Nordisk said on Friday its experimental next-generation obesity drug CagriSema helped overweight patients cut their weight by 22.7% in a late-stage trial, below the 25% it had expected, wiping as much as $125 billion off the company’s value.
Here are some reactions from investors and analysts:
MARKUS MANNS, A PORTFOLIO MANAGER AT MUTUAL FUNDS FIRM UNION INVESTMENT, A NOVO NORDISK AND ELI LILLY SHAREHOLDER:
“The results are a worst case scenario for Novo. Cagrisema is only as good as Zepbound, but more complex to manufacture.”
JEFFERIES ANALYSTS:
“First headline Phase III CagriSema obesity data disappoint with 20.4% absolute weight loss and patient adherence likely suggesting tolerability concerns, in our view.
“Our buyside survey suggested most anticipated 25%-27% absolute weight loss with GI tolerability to be broadly similar to Wegovy.”
SIMON BAKER, HEAD OF GLOBAL BIOPHARMA RESEARCH AT REDBURN ATLANTIC IN LONDON:
“(The weight loss) is considerably lower than the 25% most were expecting, based on the company’s modelling commentary.
“(…) around 23% is probably commercially sufficient longer term, but inadequate on the day, hence the very sharp drop in the stock.
“Also of note is that only 57% reached the highest dose, which will lead to speculation about tolerability despite the benign language in the press release. The 27% drop (in the share price) is completely out of proportion fundamentally, but positioning around this event was huge and it will take a while for this to stabilise.”
DNB ANALYST RUNE MAJLUND DAHL:
“We expect Novo to file on the current data and to run a new trial (starting 2025) without the flexible protocol to show improved efficacy. CagriSema is not dead and the share price reaction overdone.”
(Reporting by Maggie Fick in London and Jacob Gronholt-Pedersen in Copenhagen; Compiled by Josephine Mason; Editing by Tomasz Janowski)
