Novo Nordisk plunges due to disappointing results of study on anti-obesity drug

U.S.-listed shares of Novo Nordisk (NVO) lost ground on Friday after a study of the pharmaceutical company's latest obesity drug showed lower effectiveness at higher doses.

The company said a Phase 2a trial of the drug monlunabant found that patients with a baseline weight of 110.1 kilograms (242.7 pounds) who took 10 milligrams once daily for 16 weeks lost 7.1 kilograms (15.7 pounds), while those given a placebo lost only 0.7 kilograms (1.5 pounds). However, increasing the dose resulted in “limited additional weight loss.”

Novo Nordisk also said mild to moderate neuropsychiatric side effects, including anxiety, irritability and sleep disturbances, occurred “more frequently and in a dose-related manner” compared with placebo.

Novo Nordisk plans a larger study next year

Novo Nordisk said it will begin a larger Phase 2b study next year “to further investigate the dosing and safety profile of monlunabant.”

The company is a leader in the weight-loss drug category, with injectables Wegovy and Ozempic gaining popularity. However, it has faced criticism over the drugs' high prices, and a Novo Nordisk executive said earlier this week that the U.S. government would “very likely” consider reducing the price of Ozempic for Medicare beneficiaries.

Novo Nordisk shares lost more than 5 percent in intraday trading on Friday, but even with Friday's losses they have gained more than 22 percent since the beginning of the year.