Novo Nordisk Alzheimer’s drug trials fail in blow to weight-loss giant
COPENHAGEN (Reuters) – Novo Nordisk’s (NVO) closely following trials of an earlier oral version of its Alzheimer’s drug semaglutide failed to help slow the progression of the brain-wasting disease, the firm said on Monday, a blow to the obesity drug giant that sent its shares tumbling.
The stock was trading almost 10% lower immediately after the market opened.
The trials, which Novo previously called “lottery tickets” to highlight its highly uncertain outcome, tested whether the drug could slow cognitive decline in patients.
Those who fail hope Novo’s Alzheimer’s could open a big new market for GLP-1 drugs like semaglutide; as it faces increasing competition from blockbuster drugs in key therapeutic areas such as obesity and diabetes.
Erik Berg-Johnsen, a portfolio manager at Novo shareholder Storebrand Asset Management, told Reuters that the trial failure was probably the “nail in the coffin” for using their product against Alzheimer’s.
“The fact that the study was stopped after two years, despite plans to extend it to a third year, suggests that semaglutide provides almost no benefit in slowing the progression of Alzheimer’s.”
Novo’s trial was being closely watched as an indication of whether GLP-1 drugs, used by millions of people for diabetes and weight loss, could slow the progression of the disease.
The drug tested was Rybelsus, a pill approved only for type 2 diabetes. Novo’s blockbusters, like Ozempic and Wegovy, contain semaglutide.
Ludovic Helfgott, the company’s Executive Vice President of Product and Portfolio Strategy, described the Alzheimer’s trials as a “lottery ticket” in September, citing huge potential despite uncertain prospects.
Alzheimer’s disease and other dementias affect more than 55 million people worldwide. There is no cure.
“Although semaglutide has not demonstrated efficacy in slowing the progression of Alzheimer’s disease, extensive evidence supporting semaglutide continues to benefit individuals with type 2 diabetes, obesity and related comorbidities,” Chief Scientific Officer Martin Holst Lange said in a statement.
The results from two trials in early-stage patients, called EVOKE and EVOKE+, were another setback for the Danish drugmaker and new CEO Mike Doustdar, who had enjoyed rapid growth under the leadership of Ozempic and Wegovy before slowing sales growth and a falling share price led to a CEO change and mass layoffs.
The setback reinforces analysts’ doubts about Novo’s Alzheimer’s ambitions; UBS estimates a probability of success of just 10%.
