Novo Nordisk Stock Jumps on Positive Weight-Loss Drug Data. Why It Deserves Better.

Novo Nordisk stock has fallen 48% so far this year, in contrast to rival Eli Lilly’s 39% rise. (AFP via Getty Images)

Key Points

• Novo Nordisk’s new obesity drug, amycretin, showed up to 14.5% weight loss and reduced blood sugar in a mid-stage trial.
• Novo Nordisk stock fell 5.6% after an oral Wegovy version failed to slow Alzheimer’s progression in late-stage trials.
• Novo Nordisk’s American depositary receipts are down around 48% this year, contrasting with Eli Lilly’s 39% gain.

Novo Nordisk stock was rebounding Tuesday. It’s a tale of two drug trials.

The Danish pharmaceutical giant said its new obesity drug, amycretin, led to weight loss of up to 14.5% after 36 weeks of treatment in a mid-stage trial. It also significantly reduced blood-sugar levels in patients with Type 2 diabetes.

The company’s American depositary receipts pointed 3.6% higher ahead of the open. However, it’s not quite on track to erase the sharp losses the stock suffered Monday off the back of another set of results.

Novo stock tumbled 5.6% in the previous session after the company said an oral version of its Wegovy weight-loss drug failed to slow the progression of Alzheimer’s in two large, late-stage trials.

It was always a bit of a long shot, but the market punished the outcome—perhaps unduly.

Investors have been down on the stock for a while now—the ADRs are down around 46% this year. That’s in contrast to rival weight-loss drugmaker Eli Lilly , which reached a $1 trillion market capitalization for the first time last week.

Lilly is up 40% this year, adding more than $400 billion in market value since early August.

“Disappointing results from Novo’s Alzheimer’s drug trial are a bitter icing on top of what’s been a tough year for the pharma giant,” AJ Bell analyst Danni Hewson said.

“But the upside potential for Novo’s weight loss drugs remains. The market is expected to keep growing and the Danish pharmaceutical company has an opportunity to regain ground lost to rivals such as Eli Lilly, which has enjoyed huge success in 2025,” he added.

Write to Callum Keown at callum.keown@dowjones.com