Finance
Novo Nordisk slump wipes out last Wegovy-era gains after trial setback
Published by Global Banking & Finance Review®
Posted on February 23, 2026
2 min readLast updated: February 23, 2026
Tags:healthcare
Quick Summary
Novo Nordisk shares slid over 15% after its CagriSema obesity drug underperformed Eli Lilly’s tirzepatide in a head‑to‑head trial, erasing Wegovy-era gains and clouding Novo’s bid to regain obesity market share.
Novo Nordisk Plunge Erases Remaining Wegovy-Era Gains on Trial Miss
Feb 23 (Reuters) - Novo Nordisk shares fell more than 15% on Monday, wiping away the last gains Wegovy's launch had brought, after the drugmaker said its next-generation obesity drug CagriSema underperformed Eli Lilly's tirzepatide in a trial.
CagriSema Trial Outcome
Market Impact and Competitive Landscape
The trial was designed to show CagriSema was at least as effective as tirzepatide in reducing weight, but failed to meet that goal, the Danish group said in a statement.
Valuation and Share Price
Novo, which was worth more than $600 billion in 2024, has shed around $400 billion off that valuation, leaving the shares back at levels last seen before Wegovy transformed it into the world's most valuable drugmaker.
By mid-morning in Copenhagen, Novo's shares were trading at their lowest levels since June 2021, when its blockbuster weight-loss drug was first launched.
Analyst Reactions
J.P. Morgan analysts said the trial miss was a significant setback that could curb demand for CagriSema, temper long-term sales hopes and leave Novo struggling to win back share in the fast-growing obesity treatment market.
Zepbound vs. CagriSema
"While CagriSema could offer a new treatment option to patients, the inferiority to Zepbound means it is unlikely to help Novo retake market share in obesity," they said.
The setback adds to investor worries about intensifying competition in obesity treatments, where demand is increasingly driven by drugs offering the greatest weight-loss results.
Zealand Pharma Slide
Peers and Index Moves
Novo Nordisk was among the worst performers on Europe's benchmark STOXX 600 index on Monday. Shares of its Danish peer Zealand Pharma also fell 6.7%.
Eli Lilly Premarket Gain
Eli Lilly shares rose about 4% in U.S. premarket trade.
(Reporting by Jesus Calero in Gdansk, editing by Milla Nissi-Prussak)
Key Takeaways
- •CagriSema failed to meet non-inferiority vs Eli Lilly’s tirzepatide, delivering less weight loss over 84 weeks.
- •Novo Nordisk shares fell more than 15%, wiping out remaining Wegovy-era gains and hitting multi-year lows.
- •Analysts called the miss a significant setback that could limit CagriSema demand and long-term sales.
- •The result underscores intensifying competition in obesity drugs, where efficacy drives market share; Lilly shares rose.
- •Novo Nordisk was among the STOXX 600’s worst performers during the session, reflecting sector-wide pressure.
Frequently Asked Questions about Novo Nordisk slump wipes out last Wegovy-era gains after trial setback
1What is the main topic?
Novo Nordisk’s stock tumbled after its next‑gen obesity drug CagriSema failed to match Eli Lilly’s tirzepatide in a head‑to‑head trial, erasing the last of its Wegovy-era gains.
2How did the trial impact the stocks?
Novo Nordisk fell more than 15% as investors reacted to the miss, while Eli Lilly rose in early U.S. trading on expectations its Zepbound (tirzepatide) will keep leading the category.
3What does this mean for the obesity drug market?
The setback may curb demand expectations for CagriSema and reinforces competition where the best weight‑loss outcomes win share, potentially strengthening Lilly’s position near term.
