Novo Nordisk slump wipes out last Wegovy-era gains after trial setback

Core Viewpoint - Novo Nordisk's shares fell over 15% following a trial setback for its obesity drug CagriSema, which underperformed compared to Eli Lilly's tirzepatide, erasing gains from the launch of Wegovy [1][2]. Group 1: Company Performance - Novo Nordisk's market valuation dropped from over $600 billion in 2024 to a loss of approximately $400 billion, returning shares to levels last seen before the launch of Wegovy [2]. - The company's shares are now at their lowest since June 2021, indicating a significant decline in investor confidence [2]. Group 2: Market Competition - Analysts from J.P. Morgan indicated that the trial miss for CagriSema represents a major setback that could limit its demand and long-term sales potential, impacting Novo's ability to regain market share in the growing obesity treatment sector [2][3]. - The competition in obesity treatments is intensifying, with market demand increasingly favoring drugs that provide the most substantial weight-loss results [3]. Group 3: Stock Market Reaction - Novo Nordisk was one of the worst performers on the European benchmark STOXX 600 index, while shares of its competitor Eli Lilly rose by about 4% in U.S. premarket trading [4].