Novo Nordisk's Semaglutide Trials for Alzheimer's Hit a Major Setback

Novo Nordisk's Alzheimer's trials using semaglutide failed to show progress in slowing the disease, affecting the company's shares and future market opportunities. Despite high hopes, the two-year study was discontinued, reinforcing skepticism about semaglutide's potential against Alzheimer's.

Novo Nordisk's trials on an oral version of its semaglutide drug for Alzheimer's met with failure, resulting in a significant hit to the company's stock. The company dubbed the trials a 'lottery ticket' due to their unpredictable nature but high potential.

The trials aimed to see if the drug, already popular for diabetes and obesity, could slow Alzheimer's progression but were eventually discontinued. The study was intended to last for three years but ended after two, indicating negligible benefits.

Market analysts remained pessimistic about this development underscoring the mounting difficulties for Novo, including declining sales and increased competition. The trial results also impacted opportunities for other Alzheimer's treatment drugs from competitors Biogen and Eisai.

(With inputs from agencies.)