Novo Nordisk's stock plunge overshadows breakthroughs in weight-loss drugs

Novo Nordisk has faced financial struggles despite advances in its weight-loss and diabetes treatments. The company’s stock has fallen sharply, dropping around 68% over the past two years. Recent clinical results, however, still highlight progress in key drug developments like semaglutide and amycretin. One of Novo Nordisk’s drugs, semaglutide 2.4 mg, showed strong benefits in two separate studies. Patients using the injection saw a 52% lower risk of obstructive sleep apnea compared to those on a placebo. Additionally, the treatment reduced systolic blood pressure by 5.48 mmHg more than placebo in people with uncontrolled hypertension.

The company’s experimental drug, amycretin, has also delivered promising results. In phase 2 trials, the single-molecule dual GLP-1 and amylin receptor agonist achieved up to 14.6% weight loss over 36 weeks. It also lowered A1C levels by 1.71 percentage points. Unlike some competitors, amycretin showed no clear weight loss plateau at higher doses. Despite these breakthroughs, Novo Nordisk has struggled financially. Revenue has declined, leading to multiple downward revisions in 2025 guidance. The company’s stock performance reflects these challenges, with shares plummeting over the past two years. One bright spot remains the oral Wegovy pill, which has attracted new patients. Looking ahead, investors will watch for phase 3 trial details of amycretin, including how it compares directly to rival GLP-1 drugs. Novo Nordisk plans to develop both injectable and oral versions of the treatment. Meanwhile, Eli Lilly’s Zepbound has outperformed Novo Nordisk’s CagriSema in weight-loss trials, adding pressure to the company’s market position.

Novo Nordisk continues to push forward with new drug developments despite financial setbacks. The success of semaglutide in reducing sleep apnea and blood pressure, along with amycretin’s weight-loss results, keeps the company in the race. However, competition from Eli Lilly and ongoing revenue declines will shape its future performance.