Novo Nordisk shares plummeted 10% after a heart drug trial failed
The failure of Novo Nordisk's drug trials sent its stock tumbling 10% / Photo: JHVEPhoto / Shutterstock
Shares of Danish pharmaceutical giant Novo Nordisk fell 10% during Friday’s trading session in Copenhagen, July 31, fell 10% after the company announced the failure of late-stage clinical trials of an experimental drug for the treatment of cardiovascular disease: the drug failed to reduce the risk of complications compared to a placebo, according to CNBC.
Details
Although the investigational drug ziltivimab showed some effect, it did not result in a statistically significant reduction in the number of complications (including cardiovascular death, nonfatal myocardial infarction, or nonfatal stroke), according to a statement from Novo Nordisk.
“Although ziltivimab did not deliver the benefits we had hoped for in terms of cardiovascular complications, this does not change our strategic commitment to combating cardiovascular disease,” said Martin Holst Lange, head of research at Novo Nordisk.
More than 6,300 people suffering from atherosclerotic cardiovascular disease, chronic kidney disease, and inflammation—as assessed by blood levels of C-reactive protein—participated in the trials. During the third—and final—phase of testing the experimental drug, the overall rates of adverse events were comparable between people taking ziltivimab and those in the placebo group, the company reported. No differences in mortality were observed.
The company’s shares on the Copenhagen Stock Exchange fell 10.5% during trading, then slowed their decline and were down about 6% at the time of publication. Novo’s American Depositary Receipts fell by nearly 9% in the first few minutes of trading on July 31. Since the beginning of the year, Novo’s shares have declined by 5% in Copenhagen and by more than 7% in the U.S.
Context
The drug's failed trials dealt yet another blow to the Danish drugmaker, which is trying to restore investor confidence in its pipeline, CNBC notes.
On July 28, it was reported that a U.S. court had allowed a lawsuit against Novo to proceed, alleging possible misrepresentation of clinical trial data for the weight-loss drug CagriSema. Novo’s shareholders filed a complaint against the pharmaceutical company, alleging that it misled investors regarding a key development study before publishing the results, which ultimately led to a decline in Novo’s market value by billions of dollars.
This article was AI-translated and verified by a human editor
