Novo Nordisk Sinks on Obesity Drug Study’s Disappointing Results

Novo Nordisk’s (NVO) U.S.-listed shares lost ground Friday after a study of the pharmaceutical firm’s latest obesity treatment showed less effectiveness in higher doses.

The company said a Phase 2a trial of the drug monlunabant found patients with a baseline weight of 110.1 kilograms (242.7 pounds) taking 10 milligrams once a day for 16 weeks achieved a drop of 7.1 kilograms (15.7 pounds), versus 0.7 kilograms (1.5 pounds) for those given a placebo. However, increasing the dosage produced “limited additional weight loss.”

Novo Nordisk also reported mild to moderate neuropsychiatric side effects, primarily anxiety, irritability, and sleep disturbances, “were more frequent and dose dependent with monlunabant compared to placebo.”

Novo Nordisk Plans Larger Study Next Year

Based on the results, Novo Nordisk said it would be initiating a larger Phase 2b study next year “to further investigate dosing and the safety profile of monlunabant.”

The company is a leader in the weight-loss medicine category, with the booming popularity of its Wegovy and Ozempic injectables. However, it has received criticism over the high price of the drugs, and a Novo Nordisk executive reportedly said earlier this week that Ozempic is “very likely” to be targeted by the U.S. government for a price cut for Medicare recipients.

Novo Nordisk shares were down over 5% in intraday trading Friday, though even with Friday’s losses, they’ve gained more than 22% since the start of the year.