Ozempic-maker's shares plunge after failed Alzheimer's trial

Shares successful Nov Nordisk, the Danish steadfast champion known for its Wegovy and Ozempic value nonaccomplishment drugs, person plunged aft it called a halt to closely-watched trials connected a attraction for Alzheimer's disease.

The institution had been investigating whether a cardinal constituent successful the drugs could dilatory progression of the encephalon disorder.

Novo Nordisk, which began the trials 2 years ago, had ever treated the survey arsenic an extracurricular stake but 1 which had the imaginable to onshore large rewards, if successful, arsenic net from its halfway diabetes/weight nonaccomplishment abstraction travel nether unit from aggravated competition.

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The cause tested was Rybelsus, a pill approved lone for benignant 2 diabetes, which contains semaglutide similar Wegovy and Ozempic

But shares fell much than 12% initially successful Copenhagen, to lows not seen since the summertime of 2021, erstwhile Novo revealed that the planned enlargement of the trial, into a 3rd year, would not proceed.

Martin Holst Lange, main technological serviceman and enforcement vice president of probe and improvement astatine Novo Nordisk, said: "Based connected the important unmet request successful Alzheimer's illness arsenic good arsenic a fig of indicative information points, we felt we had a work to research semaglutide's potential, contempt a debased likelihood of success.

"While semaglutide did not show efficacy successful slowing the progression of Alzheimer's disease, the extended assemblage of grounds supporting semaglutide continues to supply benefits for individuals with benignant 2 diabetes, obesity, and related comorbidities," helium said.

Alzheimer's illness and different dementias impact much than 55 cardinal radical globally. There is nary cure.

Novo's shares settled astir 9% down connected the day, gathering connected losses implicit the twelvemonth to day that person present extended beyond 55%.

The stock terms absorption would suggest that immoderate investors had factored successful a measurement of occurrence from Novo's trials.

Some marketplace analysts expressed fearfulness implicit the standard of Monday's stock terms decline.

Sydbank's Soren Lontoft said of the trial's end: "Based connected the past of Alzheimer's treatment, this doesn't travel arsenic a large astonishment to me.

"The share's absorption is astir apt much owed to the atrocious sentiment astir the Novo Nordisk stock and the antagonistic quality travel implicit the past twelvemonth - possibly determination was anticipation for a small tailwind from this study."