Novo Nordisk Shares Drop After Heart Drug Fails Late-Stage Trial
Shares of Novo Nordisk (NVO) fell sharply after the company announced that its experimental heart drug, ziltivekimab, failed to meet its primary endpoint in a late-stage clinical trial. The Phase 3 ZEUS trial evaluated over 6,300 high-risk patients and found no reduction in major adverse cardiovascular events compared to placebo despite successful inhibition of an inflammatory pathway. The setback is seen as significant because ziltivekimab was expected to diversify Novo Nordisk's revenue beyond its dominant GLP-1 drugs. The failure weakens the company’s long-term pipeline strategy, particularly outside obesity-related treatments. NVO shares are down more than 10% year-to-date following this news. Analysts suggest that while the selloff may present a buying opportunity for some investors due to favorable technical indicators and valuation metrics compared to rivals like Eli Lilly (LLY), caution is advised ahead of upcoming Q2 earnings. The current consensus rating on NVO remains 'Hold' with no significant price target deviation from its current level.