The Novo Nordisk A/S headquarters in Bagsvaerd, Denmark, on Wednesday, Nov. 5, 2025.
Nichlas Pollier | Bloomberg | Getty Photographs
Shares of Novo Nordisk on Monday fell to a four-year low after the Danish drug pharmaceutical firm stated a extremely anticipated trial for Alzheimer’s illness failed to fulfill its primary purpose.
The trial examined whether or not semaglutide — the energetic ingredient in Novo’s blockbuster diabetes and weight reduction medication Ozempic and Wegovy — helped gradual development for Alzheimer’s illness.
Whereas remedy with semaglutide resulted in enchancment of Alzheimer’s disease-related biomarkers in two separate trials, this didn’t translate right into a delay of illness development, Novo stated in a press release Monday. The purpose had been to gradual sufferers’ cognitive decline by at the least 20%.
Novo inventory was down 10% to 274 Danish kroner ($42.33) as of 13:30 p.m. London time (8:30 a.m. ET), its lowest stage since mid-2021.
Analysts had previous to the outcomes referred to as the trials a protracted shot, whereas Novo itself had referred to it as a “lottery ticket.”
“Primarily based on the numerous unmet want in Alzheimer’s illness in addition to quite a few indicative information factors, we felt we had a duty to discover semaglutide’s potential, regardless of a low chance of success,” stated Novo’s Chief Scientific Officer Martin Holst Lange.
A protracted shot
The trial outcomes are a setback for Novo buyers that had hoped that it would reignite the corporate’s battered share worth. Even earlier than the Monday readout, Novo inventory had halved year-to-date amid a collection of steering cuts and heighted competitors, particularly in the important thing U.S. market.
“Whereas hopes weren’t excessive for a constructive readout, potential success had maybe saved some within the identify, with this outcome eradicating a near-term upside state of affairs,” wrote Jefferies analysts on Monday.
Alzheimer’s illness, the commonest type of dementia, is notoriously troublesome to deal with. Additionally it is anticipated to have an effect on an rising proportion of individuals worldwide as populations get older.
Present remedies similar to Eli Lilly’s Kisunla and Biogen/Eisai’s Leqembi have been proven to decelerate the development of the illness by as much as a 3rd, however include the chance of extreme side-effects. Shares of Eli Lilly additionally fell about 1% whereas Biogen inventory rose 5% in U.S. premarket.
Novo’s choice to check Rybelsus, an oral type of semaglutide, had been largely based mostly on real-world proof suggesting a correlation between Alzheimer’s and taking semaglutide.
The drug works in an identical approach to Lilly’s rival medicines Mounjaro and Zepbound by mimicking the intestine hormone GLP-1 that naturally happens within the physique, to manage blood sugar ranges and improve emotions of fullness. It isn’t but clear how GLP-1s may profit Alzheimer’s sufferers, however the concept is that it targets the neuroinflammation thought to impression them.
Topline outcomes will probably be introduced on the Scientific Trials in Alzheimer’s Illness convention on Dec. 3, with full outcomes on the 2026 Alzheimer’s and Parkinson’s Illnesses Conferences in March, Novo stated.
A aggressive market
Whereas shares of Novo Nordisk have plunged over the previous 18 months, rival Eli Lilly solely final week grew to become the primary pharmaceutical firm with a market capitalization of $1 trillion.
At the same time as Ozempic hit the market 4 years earlier than Mounjaro, Novo’s headstart hasn’t prevented Lilly from shortly grabbing an even bigger market share within the U.S.
This yr, Novo has lower its steering a number of instances, blaming so-called compounders which promote copycat variations of semaglutide for a less expensive worth.
Novo not too long ago changed its chairman and half its board members over a disagreement between the previous board and Novo’s controlling shareholder Novo Nordisk Basis in regards to the scope and tempo of change wanted. It got here simply months after former CEO Lars Fruergaard Jørgensen was booted after an eight-year reign because of the inventory decline.
The previous board was “too gradual in recognizing the importance of the market adjustments in the USA,” new chair Lars Rebien Sørensen stated on the time.
New CEO Mike Doustdar, who beforehand headed Novo’s ex-U.S. operations, shortly got down to refocus the corporate’s industrial priorities to its core weight problems and diabetes companies and to chop over 10% of its world workforce.
