Novo Nordisk's stock experienced a significant decline of over ten percent shortly after the company released new data from a study on its weight loss drug Cagrisema. The study indicated that participants lost an average of 23% of their body weight over the course of 84 weeks while undergoing treatment with Cagrisema. In comparison, participants treated with tirzepatid, the active ingredient in Eli Lilly's weight loss drug Zepbound, lost an average of 25.5% over the same period, highlighting the competitive landscape in the weight loss medication market.

This open-label study involved 809 participants suffering from severe obesity, all of whom had an average body weight of 114.2 kg. An open-label study means that participants were aware of the specific weight loss medication they were receiving. The results emphasize the potential effectiveness and promise of Cagrisema as Novo Nordisk's next significant avenue for obesity treatment. The drug combines semaglutide, known from the weight loss medication Wegovy, with the newer substance cagrilintide, suggesting that it may achieve better weight loss outcomes when used in conjunction.

The news represents a critical moment for Novo Nordisk as it navigates the competitive pressures from other weight loss drugs in the market. The market reaction reflects investor concern about the efficacy of Cagrisema in comparison to rival medications, which could impact the company's stock performance and future investment prospects in the obesity treatment sector, an area that has gained significant attention and investment in recent years.