Shares in Nov Nordisk, the Danish agency greatest identified for its Wegovy and Ozempic weight reduction medication, have plunged after it known as a halt to closely-watched trials on a therapy for Alzheimer’s illness.
The corporate had been testing whether or not a key ingredient within the medication might sluggish development of the mind dysfunction.
Novo Nordisk, which started the trials two years in the past, had all the time handled the examine as an out of doors wager however one which had the potential to land massive rewards, if profitable, as earnings from its core diabetes/weight reduction area come underneath stress from intense competitors.
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The drug examined was Rybelsus, a tablet authorised just for sort 2 diabetes, which incorporates semaglutide like Wegovy and Ozempic
However shares fell greater than 12% initially in Copenhagen, to lows not seen for the reason that summer time of 2021, when Novo revealed that the deliberate enlargement of the trial, into a 3rd yr, wouldn’t proceed.
Martin Holst Lange, chief scientific officer and government vp of analysis and growth at Novo Nordisk, stated: “Based mostly on the numerous unmet want in Alzheimer’s illness in addition to various indicative knowledge factors, we felt we had a accountability to discover semaglutide’s potential, regardless of a low chance of success.
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Novo’s revenues are more and more threatened by generic alternate options to Ozempic and Wegovy.
“While semaglutide did not demonstrate efficacy in slowing the progression of Alzheimer’s disease, the extensive body of evidence supporting semaglutide continues to provide benefits for individuals with type 2 diabetes, obesity, and related comorbidities,” he stated.
Alzheimer’s illness and different dementias have an effect on greater than 55 million folks globally. There isn’t any remedy.
Novo’s shares settled round 9% down on the day, constructing on losses over the yr thus far which have now prolonged past 55%.
The share value response would recommend that some buyers had factored in a measure of success from Novo’s trials.
Some market analysts expressed horror over the dimensions of Monday’s share value decline.
Sydbank’s Soren Lontoft stated of the trial’s finish: “Based mostly on the historical past of Alzheimer’s therapy, this does not come as an enormous shock to me.
