CagriSema, a drug that Novo Nordiskhad hoped would become itsnext generationweight-loss aid, has failed to meet expectations in late-stage trials, sending shares of the pharmaceutical giant tumblingas much as 24%at one point in premarket trading on Friday morning.The test drug combinessemaglutide, the active ingredient in its blockbuster Wegovy, withcagrilintide, a dual approach that suppresses the appetite and manages how the body processes food. This combination is designed to be more effective than treatments using semaglutide alone.What happened with the trial?The Phase 3 trial, conducted over 68 weeks and involving approximately 3,400 participants with obesity or overweight conditions and one or more comorbidities, was a crucial step in demonstrating the drugs potential, with the goal of achieving 25% weight loss in trial participants. But the results, while promising, fell short at weight loss of22.7%.Additionally, competitor Eli Lillys experimental drugretatrutideshowed even stronger results with a24%reduction after just 48 weeks, further highlighting the competitive advantage of Lillys offeringsand helping drive Lillys stock (NYSE: LLY) up 7% in premarket trading Friday morning.Whats next for CagriSema?Despite these setbacks, Novo Nordisk said it remains committed to CagriSema. Results from theREDEFINE 2 trial, focusing on adults with type 2 diabetes who are obese or overweight, are expected in early 2025. Meanwhile, the company plans to submit the drug for regulatory approval by the end of next year, signaling that it sees potential for further refinement and success in the competitive obesity drug market.We are encouraged by the weight loss profile of CagriSema, demonstrating superiority over both semaglutide and cagrilintide in monotherapy in the REDEFINE 1 trial, Martin Holst Lange, Novos executive vice president for development, noted in astatement. This was achieved even though only 57% of patients reached the highest CagriSema dose.Shares of Novo Nordisk A/S (NYSE: NVO) peaked in June of this year and have been on a generally downward slope since. The stock has fallen more than 26% in the last six months.