Novo Nordisk AS (NYSE:NVO), once the darling of the pharmaceutical world, tumbled Monday as investors reacted to what analysts are calling a “worst-case scenario.” 

NVO stock is tumbling. See the chart and price action here. 

Shares of Novo Nordisk stock plunged over 16% in morning trading, hitting a new 52-week low following disappointing results from the REDEFINE 4 Phase 3 clinical trial. 

This latest blow brings the stock’s one month decline to 36%.

The Data Gap: CagriSema vs. Tirzepatide

The market’s distress stemmed from the head-to-head comparison between Novo's next-generation weight-loss drug, CagriSema (a combination of cagrilintide and semaglutide), and Eli Lilly & Co.'s (NYSE:LLY)  tirzepatide (marketed as Zepbound and Mounjaro).

The 84-week trial involving 809 subjects failed to meet its primary endpoint of non-inferiority. 

The efficacy results were clear:

Adherent Treatment: Patients ...