Street View: CagriSema's 'hard to recover' profile deals blow to Novo Nordisk's long-term outlook

Danish drugmaker Novo Nordisk's NOVOb.CO next-generation obesity drug CagriSema underperformed rival Eli Lilly's LLY.N Zepbound in latest trial on Monday

The shares extend Monday's 16% losses and fall about 3% on Tuesday to June 2021 lows

The losses wipe out the market cap gains from its Wegovy weight loss drug

A BLOW TO LONG-TERM OUTLOOK

Analysts see the latest CagriSema trial as not only a short-term challenge, but a blow to Novo's long-term outlook, with some of them cutting their ratings on the news

J.P.Morgan says the "CagriSema profile seems hard to recover", while for Deutsche Bank, the trial "disproves ... optimism" that CagriSema could do much better

JPM adds Wegovy itself is not enough to offset CagriSema's weakness

The result deals a blow to the long-term outlook for the drugmaker as CagriSema has been intended to fill a gap after the loss of exclusivity on semaglutide, Citigroup says

Kepler Cheuvreux says more broadly the results cast "notable" doubt over Novo's strategic focus on amylin as the priority add-on mechanism to GLP-1

The results put pressure on both the Wegovy pill and the "next big pipeline hope" Zenagamtide, adds Jyske Bank