STORY: Novo Nordisk on Friday revealed disappointing results in a late-stage trial for its experimental next-generation obesity drug CagriSema, wiping as much as $125 billion off its market value.
The lower-than-expected weight loss from the drug candidate deals a blow to the Danish company’s ambitions for a successor to its Wegovy weight-loss drug. The company also makes Ozempic.
“We really are an expectations market,” said Morris. “The current [stock] price prices in everything going just right on a risk adjusted basis. When it doesn’t, stocks get punished.”
But Morris still believes that by the end of its fiscal quarter, Novo Nordisk will likely “still show meaningful profits,” with demand for its drugs outstripping supply.
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