Novo Nordisk Plunges 16% After Obesity Drug Falls Short

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Novo Nordisk, a healthcare giant that develops and markets diabetes and obesity treatments, saw its stock plunge 16.43% on Monday after announcing that its next-generation obesity drug, CagriSema, had not fared well in a head-to-head trial against Eli Lilly's tirzepatide. The disappointing trial results have raised questions about Novo Nordisk's strategy and its ability to expand beyond its core diabetes and obesity drug business.

Why it matters

Novo Nordisk's dramatic stock drop highlights the challenges facing pharmaceutical companies in the highly competitive obesity drug market. The company's struggles with CagriSema come after its Wegovy weight-loss drug had already faced setbacks, putting pressure on Novo Nordisk to find new growth avenues beyond its traditional diabetes treatments.

The details

In the head-to-head trial, people taking CagriSema achieved 23% weight loss after 84 weeks of treatment, compared with 25.5% for tirzepatide. The disappointing results prompted Deutsche Bank to downgrade Novo Nordisk from 'Buy' to 'Hold'. Earlier this month, Novo had warned that its 2026 sales could decline by 5% to 13%, further fueling investor concerns about the company's strategy.

• Novo Nordisk's stock fell 16.43% on Monday, February 23, 2026.
• The company announced the disappointing CagriSema trial results on the same day.

What’s next

Investors will be closely watching to see if Novo Nordisk can find new growth opportunities beyond its core diabetes and obesity drug business.