Novo Nordisk’s next-gen obesity drug underperforms in trial

Novo Nordisk’s next-generation obesity candidate led patients to lose a substantial amount of weight in a pivotal study but fell short of expectations, results that cast into doubt the future competitiveness of the company in the booming weight loss market.

The treatment, called CagriSema, led patients to lose 20% of their weight at 68 weeks in a late-stage study when looking at all participants, including those who dropped out, Novo said Friday. It led to 23% weight loss when considering only the participants who stuck with treatment. The company had earlier projected weight loss of about 25%.

Shares of Novo sank 20% in early Friday trading.