Novo Nordisk slumps further on weight loss drugs in fight with Eli Lilly

Driving the news: Novo, which makes Wegovy for weight loss — said Monday that its next-generation drug CagriSema fell short in late-stage trials against Lilly's rapidly surging Zepbound.

• CagriSema delivered 23% weight loss after 84 weeks of treatment but "did not meet the primary endpoint of showing non-inferiority on weight loss compared to" Zepbound's 25.5%, Novo acknowledged in a statement.

In a separate announcement, Lilly said Monday that Zepbound is now available as one pen with four doses.

• "The pen could serve as a more convenient option for some patients, as it reduces the number of devices they have to use in a month to take the drug," CNBC notes.

The impact: Novo shares listed on the New York Stock Exchange plunged 16% on Monday morning.

• The stock is now down 56% over the last 12 months.
• Lilly shares were up 5% Monday and have risen 20% over the last year.

Yes, but: 23% is still significant weight loss — and Novo chief scientific officer Martin Holst Lange said "we are pleased with" that result.

The bottom line: Lilly had already taken the market share lead on GLP-1s and its lead looks likely to widen.