Novo Nordisk A/S (NYSE: NVO) has halted two additional clinical trials of its experimental cardiovascular drug ziltivekimab, dealing another blow to the Danish drugmaker’s diversification strategy.
The decision came after an independent data monitoring committee concluded there was a “low likelihood” the two heart-failure studies would produce results different from an earlier failed trial.
That earlier failure, disclosed in July, showed ziltivekimab was unable to reduce major adverse cardiovascular events in a late-stage trial, raising serious doubts about the drug’s viability.
The back-to-back setbacks significantly narrow Novo’s pipeline outside its dominant obesity and diabetes business, leaving the company more exposed to competitive pressure in its core GLP-1 market.
Eli Lilly has emerged as Novo’s most formidable rival in the GLP-1 space, and hedge fund positioning data underscores the growing divergence in investor conviction between the two companies.
According to Insider Monkey’s database, hedge fund holders of Novo rose modestly to 59 funds in the second quarter from 55 in the first, with total position value climbing to $2.00 billion from $1.79 billion.
By contrast, Eli Lilly’s hedge fund holder count jumped to 152 funds from 132 over the same period, with position value surging to $17.24 billion from $12.58 billion, reflecting considerably stronger institutional confidence in Lilly.
Novo still has one remaining cardiovascular opportunity, as the company continues testing ziltivekimab in patients recovering from a heart attack, with results expected in the first half of 2027.
A positive outcome from that remaining trial could provide Novo with a meaningful growth catalyst beyond obesity and diabetes, but another failure would further erode its pipeline diversification story.
On the positive side, Novo’s core business continues to show momentum, with the oral Wegovy pill generating more than 2 million prescriptions shortly after its January 2026 launch.
The strong uptake of oral Wegovy gives Novo a competitive foothold in the emerging oral GLP-1 segment, where it is going head-to-head with Eli Lilly for market share.
By ending trials with limited prospects early, Novo can also redirect capital toward programs that offer stronger potential returns, which may partially offset the negative optics of the pipeline retreat.
Nevertheless, the company’s ability to sustain revenue growth while rebuilding a credible pipeline beyond GLP-1 drugs will be closely scrutinized by investors in the months ahead.
With two more ziltivekimab trials now scrapped, Novo faces mounting pressure to demonstrate that its long-term growth story extends beyond the obesity franchise that has defined its recent rise.
