Novo Nordisk's obesity drug CagriSema falls short against Eli Lilly's in trial

COPENHAGEN, Feb 23 (Reuters) - Novo Nordisk NOVOb.CO said on Monday its next-generation obesity drug CagriSema was less effective than Eli Lilly's LLY.N tirzepatide in a head-to-head trial, a setback in the race for dominance in the weight-loss drug market.

The trial was designed to show CagriSema was at least as effective as tirzepatide in reducing weight, but failed to meet that goal, Novo said in a statement.

The outcome is a blow to Novo Nordisk, which is fighting to regain its lost first-mover advantage in the lucrative obesity treatment market, where demand for drugs with higher efficacy is surging.

Novo Nordisk's share price fell 11% by 1002 GMT.

Novo Nordisk said CagriSema achieved a 23% reduction in body weight over 84 weeks, compared to 25.5% for Eli Lilly's tirzepatide in the trial.

The results mean Novo's next-generation treatment delivered less weight loss than Eli Lilly's drug, which is already on the market under the brand name Zepbound and Mounjaro.

Additional trials are exploring the full weight loss potential of CagriSema, including higher-dose combinations, Novo Nordisk in its statement.

Lilly shares rose 4% to $1049.94 in U.S. premarket trading.