Novo Nordisk pulls the plug on Ozempic's Alzheimer's trials—shares take a hit
Novo Nordisk just called off its big clinical trials testing Ozempic pills for Alzheimer's, after the drug didn't slow down the disease in over 3,500 patients.
The news broke and sent Novo's stock tumbling 12.4%—its lowest point since mid-2021.
The company had hoped to find new uses for Ozempic beyond weight loss, but no cognitive improvements showed up.
What went wrong and how the market reacted
Despite some physical health gains, there were zero cognitive benefits in these studies.
Novo's Chief Scientific Officer Martin Holst Lange said the company felt a responsibility to explore semaglutide's potential.
The setback has investors worried about Novo's edge in the obesity drug race.
Meanwhile, Eli Lilly's shares slipped too, but Biogen—another Alzheimer's player—actually saw its stock jump nearly 7% as investors shifted their bets.