Novo Nordisk's stock is experiencing a significant decline in premarket trading on December 20, 2024, following the release of disappointing data for its experimental obesity treatment, CagriSema. The data revealed that the drug achieved a 22.7% weight loss in test patients over 68 weeks, falling short of the company's expectations of a 25% weight loss. This shortfall has raised concerns among investors and analysts, with Jefferies predicting a drop of at least 10%-15% in the stock price due to the weaker-than-expected results. Bank of America also noted the weight loss seen with CagriSema was below expectations, further contributing to the negative sentiment.
The market's reaction to the CagriSema data is compounded by the competitive landscape in the obesity drug market, where Novo Nordisk faces pressure from rivals like Eli Lilly. Eli Lilly's shares have surged in response to the news, as their competing drugs, Zepbound and Mounjaro, continue to perform well. Additionally, the emergence of generic versions of Novo Nordisk's diabetes and weight-loss drugs in various international markets poses a long-term threat to the company's market share and pricing power.
Novo Nordisk's stock is currently priced at $84.19, a sharp decline of 18.61% from the previous close of $103.44.