Novo Nordisk shares fell as much as 10% after the drugmaker reported a failed late-stage heart drug trial.
Novo Nordisk shares fell as much as 10% on Friday after the company reported that a late-stage heart drug trial failed to reduce major adverse cardiovascular events compared to a placebo. The experimental medicine, ziltivekimab, showed biological effects but did not achieve a statistically meaningful reduction in cardiovascular death, non-fatal heart attack, or non-fatal stroke for patients with specific diseases. Chief scientific officer Martin Holst Lange stated that while the drug did not achieve the hoped-for benefit, it does not change the company's strategic commitment to cardiovascular disease. Analysts from Jefferies and Citi noted that the share price drop was disproportionate to the drug's small contribution to the overall portfolio. However, the result is strategically negative as it removes a credible non-obesity growth opportunity. The company remains under pressure from competition with Eli Lilly, and investors are now looking toward the second-quarter earnings report next week to gauge the obesity market's trajectory.