Novo Nordisk Stock (NVO) Rallies amid New Phase 3 Study for CagriSema

Shares of Novo Nordisk (NVO) are rallying in today’s trading after it launched a new Phase 3 trial for its next-generation weight loss drug, CagriSema. This comes after its previous REDEFINE 1 Phase 3 trial left Wall Street disappointed late last year. Indeed, shares of Novo, the maker of Wegovy, dropped in December after REDEFINE 1 results showed up to 23% weight loss over 68 weeks, which was below the company’s initial expectations. The trial had enrolled obese or overweight patients with at least one related health condition.

According to a federal clinical trial registry, Novo’s new study will test how well CagriSema helps with weight loss and long-term weight maintenance in roughly 600 adults with obesity. The trial, which does not yet have a public name, is structured to give the company another shot at demonstrating CagriSema’s potential as a leading obesity treatment following the mixed results from REDEFINE 1.

The new trial officially began on June 3 and will be split into two parts: a main study and an extension study. The entire trial is expected to last over three years. The main goal is to measure the percentage change in body weight over an 80-week period. By focusing on both initial weight loss and long-term weight management, Novo hopes to prove that CagriSema is a valuable option in a highly competitive obesity drug market.

Is NVO Stock a Good Buy?

Turning to Wall Street, analysts have a Hold consensus rating on NVO stock based on three Buys, four Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average NVO price target of $92.54 per share implies 24% upside potential.

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