Novo Nordisk on Monday revealed weaker-than-expected data from a second late-stage trial of its obesity drug candidate CagriSema, knocking shares and stoking worries that rival Eli Lilly may be gaining an edge over the company in the weight-loss drugs market.

Novo Nordisk reported results on its next-generation obesity drug in diabetes patients, including data on weight loss that fell short of investors’ expectations.

Novo’s share price fell 8 per cent on Monday, having previously dived in December after a late-stage trial of CagriSema in overweight or obese people without diabetes found they lost an average of 22.7 per cent of their body weight. That was only marginally ahead of results for Mounjaro, an existing rival treatment made by Eli Lilly.

Novo Nordisk said on Monday its experimental next-generation drug CagriSema helped overweight or obese patients with type 2 diabetes cut their weight by 15.7% after 68 weeks, but shares fell, likely on the lower-than-expected weight loss.

The setback comes at a crucial time for Novo Nordisk, which had positioned CagriSema as its next-generation weight-loss treatment. The current generation, made up of blockbuster drugs like Wegovy and Ozempic, have been cash cows for Novo.

Denmark: CagriSema has demonstrated superior weight loss in adults with obesity or overweight and type 2 diabetes in the REDEFINE 2 trial, Novo Nordisk said in a release.The headline results

Novo Nordisk will explore how GLP-1 drugs could help patients struggling with addiction, its head of development Martin Holst Lange told an online press conference on Thursday.

Roche agreed to develop a weight-loss drug with Danish biotech Zealand Pharma, pressuring Novo Nordisk and Eli Lilly.

Key Takeaways Roche moved to enter the booming weight-loss drug market now dominated by Novo Nordisk and Eli Lilly.The Swiss pharmaceutical firm signed an exclusive agreement with Zealand Pharma to produce treatments using Zealand's experimental petrelintide injectable.