Ozempic-maker's shares plunge after failed Alzheimer's trial

Core Viewpoint - Novo Nordisk's shares have significantly declined following the cessation of trials for an Alzheimer's treatment, which was based on a key ingredient from its weight loss drugs, Wegovy and Ozempic [1][3]. Group 1: Trial Details - The trials for the Alzheimer's treatment, utilizing semaglutide, began two years ago and were considered a long shot with potential high rewards due to competitive pressures in the diabetes and weight loss markets [2]. - The drug tested, Rybelsus, is approved for type 2 diabetes and contains semaglutide, similar to Wegovy and Ozempic [3]. - The trials were halted after semaglutide did not show efficacy in slowing Alzheimer's progression, despite the significant unmet need in this area [4][6]. Group 2: Market Reaction - Following the announcement, Novo Nordisk's shares initially fell over 12% in Copenhagen, reaching lows not seen since summer 2021, and ultimately settled around 9% down for the day, contributing to a year-to-date loss exceeding 55% [3][7]. - Analysts noted that the share price reaction may reflect broader negative sentiment surrounding Novo Nordisk, rather than just the trial's outcome [9].