Rivals wipe £350bn off struggling fat jab firm Novo Nordisk as shares slump another 16%
Shares in Novo Nordisk slumped by more than 16 per cent yesterday – meaning it has lost all of the gains brought by the launch of its blockbuster weight-loss drug Wegovy.The fat-jab maker’s stock rose fourfold between June 2021 and June 2024 as Wegovy transformed the Danish group into Europe’s most valuable drugmaker with a value of £480billion.But the shares are back at June 2021 levels, having crashed down to earth – shedding £350billion of value in the process.The latest sell-off came after Novo said its next-generation obesity drug CagriSema had underperformed arch-rival Eli Lilly’s Zepbound in a head-to-head trial.Lilly shares rose almost 5 per cent.US giant Eli Lilly sells Zepbound as Mounjaro in Europe and has stolen a march on Novo in the battle for dominance in the booming weight-loss drugs market. Shedding pounds: Shares in fat jab maker Novo Nordisk slumped by more than 16% as it struggles to keep pace with US rival Lilly The results of the trial leave Novo struggling to fight back against Eli Lilly amid fierce competition. Investors said CagriSema was seen as a powerful contender to Zepbound.Markus Manns, a fund manager at Union Investment, which holds stakes in both Novo and Eli Lilly, said these results leave the Danish company facing an ‘uphill battle’ with the drug.He said: ‘This is a worst-case scenario for Novo, now it is clinically proven that Mounjaro is better than CagriSema. 'The base case was that Mounjaro and CagriSema are similar. Nobody had on the agenda that Cagri would be worse than Mounjaro.’DIY INVESTING PLATFORMSAJ BellAJ BellEasy investing and ready-made portfoliosHargreaves LansdownHargreaves LansdownFree fund dealing and investment ideasinteractive investorinteractive investorFlat-fee investing from £4.99 per monthFreetradeFreetradeInvesting Isa now free on basic planTrading 212Trading 212Free share dealing and no account feeAffiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.Compare the best investing account for you
Share or comment on this article:
Rivals wipe £350bn off struggling fat jab firm Novo Nordisk as shares slump another 16%
