Ozempic Maker Novo Nordisk Tests New Hybrid Drug That Can Reduce Weight Up To 25%
Novo Nordisk A/S (NYSE:NVO) is advancing its research on a pioneering hybrid drug, CagriSema. This drug merges semaglutide and cagrilintide and aims to reduce weight by 25% without added side effects.
What Happened: The Danish pharmaceutical giant is contending with rivals like Eli Lilly & Co. (NYSE:LLY), also crafting next-gen weight-loss medications. Eli Lilly’s Zepbound, or Mounjaro, has demonstrated superior weight loss results compared to Novo’s Wegovy. Novo’s CagriSema targets a secondary gut hormone, amylin, potentially offering a more potent solution.
The development of the new drug, as reported by Bloomberg on Monday, seeks to sustain Novo’s leadership in the fiercely competitive obesity treatment sector.
CagriSema might resolve the prevalent issue of weight regain post-treatment with obesity drugs. The combination of semaglutide and cagrilintide could also be beneficial for type 2 diabetes management. Novo’s development chief, Martin Holst Lange, has shown optimism about the drug’s promise, though he refrained from making any guarantees.
See Also: FDA Panel Rejects Lexicon’s Zynquista For Type 1 Diabetes
With Novo’s earnings report approaching and investor concerns mounting, the results from CagriSema’s extensive clinical trial, anticipated in December, are pivotal. A successful trial could bolster the company’s market standing, whereas failure might result in substantial financial challenges, as noted by UBS Group AG analyst Jo Walton.
Why It Matters: The obesity drug market is witnessing a transformative phase, with 16 new obesity drugs expected to emerge by 2029, potentially altering the dominance of current leaders like Novo Nordisk and Eli Lilly. These upcoming treatments aim to exceed existing efficacy levels while offering more convenient dosing options, such as oral and monthly injections. This shift, driven by innovation and competition, could reshape the market landscape despite Novo and Lilly’s current stronghold.
Furthermore, Novo Nordisk is under increasing political scrutiny over the high U.S. prices of its weight-loss drugs, Ozempic and Wegovy, especially as the U.S. presidential election approaches. The significant price disparity between the U.S. and other markets has attracted criticism from lawmakers, placing the company in the political spotlight.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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