Novo Nordisk has reported new data from its Redefine 2 trial, revealing the latest performance of its experimental weight-loss drug, CagriSema. The trial focused on individuals with obesity or those who were overweight and had type 2 diabetes. Following the announcement, the company’s stock saw a significant decline. The results were closely watched by investors, given Novo Nordisk’s prominent position in the obesity and diabetes treatment market. With increasing competition from rivals such as Eli Lilly, the pharmaceutical company continues to navigate challenges in sustaining market leadership.
Earlier trial results for CagriSema had also impacted Novo Nordisk’s market valuation. In December, the company experienced a substantial drop in its market capitalization after the results of the Redefine 1 trial were disclosed. That study evaluated the drug’s effect on people who were overweight or obese but did not have diabetes. While previous trials established the drug’s weight-loss potential, the latest results were examined closely for comparative efficacy against other medications in Novo Nordisk’s portfolio, such as Ozempic and Wegovy.
How Did CagriSema Perform in the Latest Trial?
In the Redefine 2 trial, patients using the highest dose of CagriSema lost 15.7% of their body weight, while those on a placebo lost 3.1%. The study involved 1,206 participants with an average starting weight of about 224 pounds. The drug is a combination of semaglutide, the active ingredient in Ozempic and Wegovy, and cagrilintide, a synthetic form of the hormone amylin. The pharmaceutical company aims to evaluate whether this combination can provide long-term weight-loss benefits for individuals struggling with obesity and diabetes.
What Are Novo Nordisk’s Next Steps?
Novo Nordisk plans to present the findings from both Redefine trials at a scientific conference in 2025 and anticipates filing for the first regulatory approval of CagriSema in early 2026.
“The Redefine 2 results confirmed the superior efficacy of CagriSema in people with overweight or obesity and type 2 diabetes,”
stated Martin Holst Lange, executive vice president for development at Novo Nordisk. He added that the company aims to bring the therapy to regulatory authorities to expand treatment options for patients.
The company faces increasing competition from Eli Lilly, which has been expanding access to its weight-loss drug, Zepbound. Novo Nordisk recently reduced the price of Wegovy for U.S. cash-paying patients through its direct-to-consumer pharmacy, a move that follows similar steps by Eli Lilly in making weight-loss treatments more accessible. Both companies are intensifying their efforts to attract consumers amid rising demand for obesity and diabetes treatments.
Despite surpassing Wall Street’s revenue expectations in its most recent fiscal quarter, Novo Nordisk has projected slower sales growth in 2025. The pharmaceutical firm attributes this to growing competition in the weight-loss drug sector. The company remains focused on advancing its pipeline while adjusting pricing strategies to maintain market share.
Novo Nordisk’s latest trial results highlight the complexities of the weight-loss drug market, where effectiveness, competition, and regulatory considerations all play crucial roles. While CagriSema demonstrated notable weight-loss results, investor reactions indicate concerns about its potential compared to existing treatments. The weight-loss drug industry is evolving rapidly, with pharmaceutical companies adapting to pricing pressures and competitive dynamics. As regulatory processes unfold, the commercial outlook for CagriSema will depend on how it is positioned against current and emerging treatments in the field.
