Novo Nordisk's stock price plummets as obesity drug trials lose to competitors

2026-02-23 18:32:20

Investing.com - Novo Nordisk’s stock listed in Copenhagen plummeted sharply during Monday morning trading, after the pharmaceutical giant announced that its experimental obesity drug CagriSema failed to meet the primary endpoint in an open-label head-to-head trial.

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The study aimed to demonstrate that CagriSema is not inferior to its main competitor, Eli Lilly’s Tirzepatide, in helping to reduce weight.

Novo Nordisk has historically held a strong position in the booming obesity treatment market with drugs like Wegovy and Ozempic, but is now facing fierce competition from Eli Lilly and telemedicine companies offering low-cost generic versions. By 2025, Novo Nordisk’s stock price had fallen by 49%.

Last week, Novo Nordisk announced it would nominate two seasoned pharmaceutical industry professionals to join the board, injecting fresh blood into its leadership after recent restructuring.

Lars Rebien Sørensen has been appointed chairman of the board; this individual, who previously criticized Novo Nordisk’s management for not responding quickly enough to challenges in the U.S. market, will gain greater influence.

Reuters contributed to this article.

(This is a developing report; please check back later for updates.)

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