Novo Nordisk takes a plunge on Alzheimer's drug
The group crashed 10% on the stock exchange. Its semaglutide-based drug missed its main target in slowing cognitive decline
Novo Nordisk after the success of itsanti-obesity drugs plunged on the Copenhagen Stock Exchange by almost 10% due to the clinical failure of one of its Alzheimer's drugs (here the listing on Wall Street). The group announced that an oral version of its semaglutide-based drug failed to meet the primary endpoint in late-stage clinical trials aimed at testing whether the drug could slow cognitive decline in Alzheimer's patients.
The Alzheimer's market
The data are crucial for Novo, as Alzheimer's disease would represent a major new market for GLP-1-based drugs such as semaglutide, following the successful treatment of obesity and diabetes. Alzheimer's patients currently have limited treatment options. The drug being tested is Novo's Rybelsus, a pill currently only approved for the treatment of type 2 diabetes. Both Rybelsus and Novo's successful drugs Ozempic and Wegovy are based on the same active ingredient, semaglutide, a GLP-1 drug.
"A lottery ticket"
The company's executive vice-president in charge of product and portfolio strategy, Ludovic Helfgott, had described the Alzheimer's trials as a 'lottery ticket' in September, referring to its uncertain prospects but huge potential.
"Although semaglutide has not shown efficacy in slowing down the progression of Alzheimer's disease, it continues to provide benefits for people with type 2 diabetes, obesity and related comorbidities," said scientific director Martin Holst Lange.
The Danish company is struggling to regain its position after losing first place in the market for anti-obesity drugs to the US-based Eli Lilly.
