High bar set for success of new wave of obesity drugs

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By Lisa Jarvis / Bloomberg Opinion

In a new study, an experimental obesity drug from Novo Nordisk called CagriSema allowed people to lose more than 20 percent of their body weight, on average, a result that caused the Danish company’s stock price to fall by as much as 29 percent. Yes, fall.

For anyone not closely following the heated race for obesity drug dominance (there must be a few of you left?), it might look like we’re living in the upside-down. After all, if these same data were unveiled just three years ago, the market reaction would have been wildly different. The stock might have gone up and headlines would have heralded an advance in the fight against obesity.

But we’re in a new era of obesity medicine. The bar for success, once quite modest, has quickly gotten extraordinarily high; especially so for CagriSema. Let me explain.

Although Novo will still make a mind-blowing amount of money from its existing obesity drugs in the coming years (its collection of GLP-1 drugs is likely to become the most lucrative franchise in the industry next year), CagriSema was seen as essential for continued growth in 2030 and beyond. And the study results suggest it might not be the contender investors had hoped for.

https://www.heraldnet.com/opinion/comment-high-bar-set-for-success-of-new-wave-of-obesity-drugs/