Novo Nordisk A/S’s blockbuster drug Wegovy was targeted for price cuts by the US government and suffered a setback in a new trial, adding to growing threats to the Danish company’s early dominance in the surging market for new weight-loss treatments.

Tripling the dosage of the Wegovy weight-loss drug leads to more weight loss, Novo Nordisk said Friday. The Danish drugmaker announced results from a Phase 3B trial of semaglutide at a 7.2 milligram dosage,

A high dose of Novo Nordisk’s obesity drug Wegovy led patients to lose substantial weight in a clinical trial, but still less than what’s been seen with Zepbound.

Eli Lilly (NYSE: LLY) began a roll in late 2020 that lasted almost four years. During that time, it became the world's largest healthcare company, with a market cap that topped $860 billion at one point.

Shares of Eli Lilly were already in an intermediate-term decline before the announcement. The stock has dropped 25% from its 2024 highs as investors have been unimpressed with Eli Lilly’s drug pipeline and management.