Novo Nordisk saw a significant drop in its stock price, falling 15% on February 23, 2026. This decline followed the announcement that its weight loss drug, CagriSema, did not meet its key goal of demonstrating non-inferiority in weight loss when compared to Eli Lilly's tirzepatide in clinical trials.
The trial results showed that patients taking CagriSema achieved a weight loss of 23% after 84 weeks, while those taking a 15 mg dose of tirzepatide lost 25.5% during the same period.
Novo Nordisk's shares were last seen trading at 256 Danish kroner, marking the lowest level for the company since June 2021. In contrast, Eli Lilly's stock experienced a rise of 3.5% in premarket trading after the trial results were released.
The stark difference in stock performance reflects the competitive landscape between the two companies in the weight loss medication market.
Novo Nordisk is currently facing several challenges that could impact its future performance. The company is dealing with increased competition not only from Eli Lilly but also from other competitors in the weight loss drug market.
Additionally, Novo Nordisk has been impacted by lower prices in the U.S. market and is experiencing a loss of exclusivity for its popular drugs, Wegovy and Ozempic, in certain regions.
Earlier this month, Novo Nordisk projected a decline in sales and profit growth of between 5% and 13% for 2026.
This forecast is influenced by the ongoing competition and pricing pressures in the market. CEO Mike Doustdar mentioned that stakeholders should expect the stock to decline further before it has a chance to recover.
Despite the setback, Novo Nordisk is not giving up on CagriSema. The company is exploring additional trials to test the drug, including higher-dose combinations.
The Chief Scientific Officer, Martin Holst Lange, expressed optimism about CagriSema, stating that it has the potential to be the first GLP-1/amylin-combination product available for people living with obesity. The company aims to demonstrate that cagrilintide adds significant benefits to semaglutide, leading to greater weight loss results.
