Feb 23 (Reuters) – Novo Nordisk shares slumped by more than 16% on Monday, wiping away the remaining \u200cgains brought by its blockbuster weight-loss drug Wegovy, \u200cafter the drugmaker said its next-generation obesity drug CagriSema underperformed Eli Lilly’s \u200brival.<\/p>\n
Novo, which in 2024 was worth more than $650 billion, has since shed around $475 billion, with the shares back at levels last seen before Wegovy transformed it into Europe’s most \u200cvaluable drugmaker.<\/p>\n
Novo’s shares \u2060fell to their lowest level since June 2021, when Wegovy was first launched, driving a \u2060long sales and share price boom that even helped propel Denmark’s wider economy.<\/p>\n
Novo shares were among the biggest decliners in \u200bEurope’s benchmark \u200bSTOXX 600 index. Meanwhile, \u200bshares of Eli Lilly rose \u200cabout 4% in U.S. morning trade.<\/p>\n
J.P. Morgan analysts said the trial miss was a significant setback that could curb demand for CagriSema, temper long-term sales hopes and leave Novo struggling to \u200cwin back share in the fast-growing \u200bobesity treatment market.<\/p>\n
The setback adds to \u200binvestor worries about \u200bintensifying competition in obesity treatments, where demand is \u200cincreasingly driven by drugs offering \u200bthe greatest \u200bweight-loss results.<\/p>\n
Shares of Novo’s Danish peer Zealand declined 7%, but analysts brushed off broader concerns about its own \u200bweight-loss drug, similarly \u200ctargeting the amylin hormone.<\/p>\n
(Reporting by Jesus Calero in \u200bGdansk and Bhanvi Satija in London, editing by \u200bMilla Nissi-Prussak and Andrei Khalip)<\/p>\n","protected":false},"excerpt":{"rendered":"Feb 23 (Reuters) – Novo Nordisk shares slumped by more than 16% on Monday, wiping away the remaining…\n","protected":false},"author":2,"featured_media":32014,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[271],"tags":[18973,276,272,1442,3388],"class_list":["post-32013","post","type-post","status-publish","format-standard","has-post-thumbnail","category-novo-nordisk","tag-drugmaker","tag-eli-lilly","tag-novo-nordisk","tag-obesity-treatment","tag-weight-loss-drug"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@dk\/116166989173812235","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/dk\/wp-json\/wp\/v2\/posts\/32013","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/dk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/dk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/dk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/dk\/wp-json\/wp\/v2\/comments?post=32013"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/dk\/wp-json\/wp\/v2\/posts\/32013\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/dk\/wp-json\/wp\/v2\/media\/32014"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/dk\/wp-json\/wp\/v2\/media?parent=32013"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/dk\/wp-json\/wp\/v2\/categories?post=32013"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/dk\/wp-json\/wp\/v2\/tags?post=32013"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}