Novo Nordisk's Setback: Alzheimer's Trials Come Up Short

Novo Nordisk announced its oral semaglutide failed in late-stage trials for Alzheimer's, impacting shares. The drug, used for diabetes, held high hopes for Alzheimer's market but did not meet cognitive decline targets. The setback affects Novo's GLP-1 medicines after successes in diabetes and obesity.

Novo Nordisk faced a significant setback as their older oral semaglutide version did not meet its primary objective in late-stage trials aimed at slowing cognitive decline in Alzheimer's patients, resulting in a 10% drop in share prices.

The Alzheimer's outcome is disappointing for Novo, which anticipated expanding its GLP-1 medicine market following success with diabetes and obesity treatments. While semaglutide, branded as Rybelsus, helped with type 2 diabetes, it failed to show efficacy against Alzheimer's, leaving patients with few options.

Despite setbacks with trials EVOKE and EVOKE+, Novo continues to see semaglutide as beneficial for diabetes and obesity. The trials reflect the high-risk, high-reward nature of Alzheimer's research, underscored by UBS's prediction of a low success probability and internal descriptions as a 'lottery ticket'.

(With inputs from agencies.)