Novo Nordisk (NVO) Longshot Alzheimer’s Trial Fails

Semaglutide, the active ingredient in the diabetes and weight loss drug Ozempic, is being explored for a number of different uses. It has shown promise in everything from PCOS (polycystic ovary syndrome), reducing cardiovascular risks, and has anti-neuroinflammatory effects.

The last reason is why several drugmakers were looking at Ozempic as a possible Alzheimer’s treatment. The rate of the disease steadily continues to rise, and drug companies have been working to crack the case for decades. Cedars-Sinai estimates that more than 1 in 10 Americans are living with Alzheimer’s or some form of dementia – and that number is expected to double by 2050.

We don’t know exactly what causes Alzheimer’s, but it seems to be related to a buildup of proteins in the brain that cause nerve cell damage within the organ. One theory is that these buildups, or plaques, are irritating to other parts of the brain – inflammation. 

However, this latest trial, like all others so far, has ended unsuccessfully. Novo Nordisk (NVO) fell around 10% in the premarket after announcing a pill version of Ozempic did not slow the progression of Alzheimer’s in two large studies. 

“While treatment with semaglutide resulted in improvement of Alzheimer’s disease-related biomarkers in both trials,” the company wrote, “this did not translate into a delay of disease progression.” Novo is pausing plans to extend the Phase 3 trials for another year.

In the pharma industry, looking for new treatments for a blockbuster drug is usual: not only is the supply already there, but companies want to get as much as they can out of a drug before their patent ends. Semaglutide has already been around for a while and is manufactured by multiple companies – and possibly off-label through compound pharmacies, which soared during early shortages.

While the Alzheimer’s trial failed, investors should keep in mind that the weight-management market continues to grow, especially as drugmakers create non-injectable versions. And, the drug still has promising uses in common conditions without many treatment options, like PCOS (where the solution is surgery, sometimes multiple times).

Before the open, Novo Nordisk (NVO) stock has lost over 50% since last year and is down 45% year-to-date. Is this a potential opportunity for long-term investors, or is it still finding its footing after a tremendous run on Ozempic hype?

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