Novo’s Obesity Shot Shortfall Shows Danger of Promising Too Much

Novo Nordisk A/S’s failure to meet its own bar for success on a next-generation obesity shot shows the danger of promising too much in the cut-throat market for weight-loss drugs.

The Danish drugmaker repeatedly told investors that CagriSema, expected to be launched in 2026, would help people lose 25% or more of their body weight. Instead, patients on the experimental drug lost 20.4% in a study, putting the treatment on par with what arch rival Eli Lilly & Co. already has on the market in Zepbound.

Reaction from the markets was swift and brutal. Novo shares fell as much ...