Novo Nordisk Loses Wegovy-Era Gains

Shares of Novo Nordisk plunged more than 16%, erasing the remaining gains driven by its blockbuster weight-loss drug Wegovy. The sharp decline followed disappointing trial results for its next-generation obesity treatment CagriSema, which underperformed a rival therapy from Eli Lilly. The drop pushed Novo’s valuation sharply lower, extending a massive fall from its 2024 peak when it was briefly worth over $650 billion.

Novo has now shed roughly $475 billion in market value, with its shares retreating to levels last seen before Wegovy’s 2021 launch transformed the company into Europe’s most valuable drugmaker. The stock was among the biggest decliners on Europe’s STOXX 600 index, while Eli Lilly shares gained in U.S. trading, reflecting investor confidence in its competing obesity treatments.

Analysts said the trial setback could dent long-term sales prospects for CagriSema and make it harder for Novo to regain market share in the rapidly expanding obesity drug sector. Growing competition, particularly from highly effective weight-loss therapies, has intensified pressure on the Danish drugmaker as investors reassess its growth outlook.

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