Novo Nordisk Shares Plunge Following Disappointing Obesity Drug Trial Results
London, 23 February 2026 – Danish pharmaceutical giant Novo Nordisk has seen its share price drop by as much as 10% in European trading today. The slump follows the release of headline results from the REDEFINE 4 clinical trial, which revealed that the company’s experimental weight-loss injection, CagriSema, failed to outperform a rival product from Eli Lilly in a direct head-to-head comparison.
Trial Setback and Market Reaction
The REDEFINE 4 trial, an open-label phase 3 study, was designed to test CagriSema against Eli Lilly’s tirzepatide (marketed as Mounjaro). While CagriSema achieved a significant weight loss of 23% over an 84-week period, it failed to meet its primary endpoint of demonstrating superiority over the Eli Lilly treatment. This news has intensified pressure on Novo Nordisk, whose shares have already struggled over the past year, losing approximately half of their value since early 2025.
The market reaction reflects growing concerns regarding increased competition in the obesity and diabetes sectors, as well as the impact of mandated price cuts and the rise of compounded “copycat” medications. Despite the trial results, some analysts suggest the company may now be undervalued, with certain Discounted Cash Flow (DCF) models indicating a potential 69% undervaluation following the recent sell-off.
Strategic Board Nominations and Regulatory Updates
In an effort to strengthen its leadership amidst these challenges, Novo Nordisk announced last week the nomination of two industry veterans, Jan van de Winkel and Ramona Sequeira, to its board of directors. This move is seen as a strategic attempt to bring fresh expertise to the company’s governance following a significant leadership shake-up last autumn.
On the regulatory front, the European Commission recently granted approval for a higher 7.2 mg maintenance dose of Wegovy (semaglutide). Clinical data for this increased dose showed that patients lost an average of 21% of their body weight, providing a more potent option for adults requiring additional assistance with chronic weight management.
Novo Nordisk: Key Facts and Corporate Profile
Established over a century ago, Novo Nordisk remains a global leader in the treatment of serious chronic diseases. The company is currently navigating a complex landscape of innovation, litigation, and intense market rivalry.
| Category | Details |
|---|---|
| Headquarters | Bagsværd, Denmark |
| Founded | 21 December 1923 |
| Core Therapeutic Areas | Diabetes, Obesity, Haemophilia, Growth Disorders |
| Key Products | Wegovy, Ozempic, Victoza, NovoLog |
| Recent Trial | REDEFINE 4 (CagriSema) |
| Current CEO | Lars Fruergaard Jørgensen |
Frequently Asked Questions
Why did Novo Nordisk shares fall today?
Shares fell by 10% on 23 February 2026 after the company announced that its experimental drug, CagriSema, did not lose as much weight as Eli Lilly’s tirzepatide in a head-to-head phase 3 clinical trial.
What is the status of the legal action against Hims & Hers?
Novo Nordisk recently filed a lawsuit against the telehealth provider Hims & Hers, alleging the unlawful mass-production and advertising of compounded “knockoff” versions of its popular GLP-1 medications, Wegovy and Ozempic.
Is Wegovy still being updated?
Yes. The European Commission has recently approved a higher 7.2 mg maintenance dose of Wegovy for adults with obesity, following clinical studies demonstrating an average weight loss of 21%.
What other health conditions does Novo Nordisk treat?
Beyond diabetes and obesity, Novo Nordisk specialises in rare bleeding disorders (haemophilia), human growth hormone therapy, and hormone replacement therapy.