Novo Nordisk A/S (NVO) shares tumbled 5.08% in pre-market trading on Monday, following the release of clinical trial results for its new weight loss drugs. The Danish pharmaceutical giant, known for its blockbuster obesity treatment Wegovy, faced investor skepticism despite reporting positive outcomes from its latest studies.

The company's experimental drug CagriSema showed a mean weight loss of 22.7% after 68 weeks in a Phase 3 trial, falling short of the 25% weight loss investors had anticipated. This disappointment follows a previous setback in late 2024 that had already wiped out nearly $100 billion of Novo Nordisk's market value. Additionally, while a higher 7.2mg dose of Wegovy demonstrated increased efficacy with a 20.7% mean weight loss compared to the current 2.4mg dose, the marginal improvement may not have met market expectations.

Despite these results, Novo Nordisk remains committed to advancing its obesity treatment pipeline. The company plans to file for a label update for the higher Wegovy dose in the EU in the second half of 2025, followed by submissions in other markets. However, the pre-market plunge suggests that investors are reassessing the company's growth prospects in the highly competitive weight loss drug market, particularly in light of rising competition from rivals like Eli Lilly.