Novo Nordisk loses bid to dismiss lawsuit over CagriSema trial readout

U.S. District Judge Robert Kirsch in New Jersey refused to dismiss most of the securities lawsuit filed by investors after Novo Nordisk’s CagriSema readout. While the judge found the plaintiffs’ claim insufficient for many alleged misstatements, he concluded that the investors had shown the company’s statements about the trial could be materially misleading.

Novo Nordisk’s phase 3 trial of CagriSema, a combo of cagrilintide and semaglutide, missed its target of a 25% average weight loss, sending the stock down about 19% on the day of the announcement. The disappointing results triggered the legal action.

The lawsuit focuses on comments made by Novo’s chief scientific officer, Martin Holst Lange, and other executives regarding the drug’s tolerability and the flexible dosing protocol used in the pivotal study. Plaintiffs argue the company failed to disclose that the trial design was adjusted to address tolerability concerns, which they say misled investors.