On September 7, 2026, Reuters reported that Novo Nordisk A/S (NYSE:NVO) halted two additional trials of its experimental cardiovascular drug ziltivekimab, further denting the Danish drugmaker’s efforts to diversify beyond its blockbuster obesity and diabetes franchise.
The move follows a July disclosure that ziltivekimab failed to reduce major adverse cardiovascular events in a late-stage trial. An independent data monitoring committee found a “low likelihood” that the two additional heart-failure studies would produce a different result from that earlier failure, prompting Novo to end them ahead of schedule.
Bull Case
Novo Nordisk A/S (NYSE:NVO) still has one opportunity to create value from its cardiovascular program. The company will continue testing ziltivekimab in patients recovering from a heart attack, with results expected in the first half of 2027. A successful outcome could give Novo another growth opportunity outside its obesity and diabetes franchise.
Novo’s core obesity and diabetes business remains the much larger driver of its financial performance. The oral Wegovy pill has already generated more than 2 million prescriptions shortly after its January 2026 launch. It gives Novo an important growth opportunity as the company competes with Eli Lilly in the oral GLP-1 market.
The company can also preserve capital by ending trials that show limited prospects for success. An independent data monitoring committee found a low likelihood that the two heart-failure studies would produce different results from the earlier failed trial. Novo can redirect the resources it would have spent on those studies toward higher-potential programs.
Bear Case
The latest decision further weakens Novo Nordisk A/S (NYSE:NVO)’s efforts to diversify beyond obesity and diabetes. The business already reported a ziltivekimab failure in July. It has now stopped two more heart-failure trials after the monitoring committee reached a similarly negative assessment. Hence, Novo has fewer opportunities to build another major growth franchise.
The shrinking cardiovascular pipeline increases Novo’s dependence on its core obesity business. Eli Lilly is challenging Novo in the GLP-1 market. So Novo now faces greater pressure to defend market share and sustain growth within its most important therapeutic category.
The remaining ziltivekimab trial also carries real downside risk. If the heart-attack study fails, Novo could lose another potential path to diversify its revenue beyond obesity and diabetes. That outcome could leave investors with fewer pipeline catalysts to offset competitive pressure in the company’s core market.
Hedge Fund Sentiment
Novo Nordisk A/S (NYSE:NVO)’s hedge fund base grew modestly to 59 funds in the second quarter from 55 in the first, with position value rising to $2.00 billion from $1.79 billion, according to Insider Monkey’s database.
Eli Lilly’s holder count jumped further ahead over the same period, to 152 funds from 132, with position value surging to $17.24 billion from $12.58 billion, underlining how much more conviction hedge funds currently have in Lilly than in Novo.
Conclusion
Novo Nordisk’s decision to scrap two heart-failure trials further weakens its efforts to build growth beyond obesity and diabetes. It leaves the company more dependent on its core GLP-1 franchise as Eli Lilly intensifies competition.
The remaining ziltivekimab trial offers one potential cardiovascular catalyst, but another failure would further narrow Novo’s pipeline of diversification opportunities. Hence, the firm’s ability to sustain growth in obesity while rebuilding its broader pipeline will remain critical for the stock.
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