Novo Nordisk's oral GLP-1 drug didn't work on Alzheimer's as hoped, but don't call it a failure

By Tomi Kilgore

The Ozempic, Wegovy maker said oral semaglutide, which is the key ingredient in its diabetes and weight-loss drugs, didn't work better than placebo against Alzheimer's

Novo Nordisk's stock tumbles after its oral GLP-1 drug failed to show a benefit over a placebo against Alzheimer's disease.

Shares of Novo Nordisk A/S took a dive in early Monday trading after the drugmaker said oral semaglutide, which is the key ingredient in the company's Ozempic and Wegovy diabetes and weight-loss drugs, didn't show any real benefit in treating Alzheimer's disease.

The Denmark-based company said the two-year-long evoke and evoke+ Phase 3 studies in 3,808 adults with early-stage Alzheimer's symptoms showed that Rybelusus - the brand name of Novo's oral semaglutide drug - didn't produce a statistically significant benefit over placebo.

"While treatment with semaglutide resulted in improvement of Alzheimer's disease-related biomarkers in both trials, this did not translate into a delay of disease progression," Novo Nordisk said in a statement.

The U.S.-listed stock (NVO) (DK:NOVO.B) dropped 6.4% in recent midday trading, putting it on track to close at the lowest price since July 22, 2021.

Novo said the decision to pursue trials of semaglutide in Alzheimer's was based on "real-world evidence" studies, preclinical models and post-hoc analysis from diabetes and obesity trials.

"Based on the significant unmet need in Alzheimer's disease as well as a number of indicative data points, we felt we had a responsibility to explore semaglutide's potential, despite a low likelihood of success," said Chief Scientific Officer Martin Holst Lange.

Novo did not share any data in Monday's release, though it's set to present detailed results at the upcoming Clinical Trials in Alzheimer's Disease conference on Dec. 3 in San Diego. Given the results of the trials, the company said the one-year extension period in the evoke and evoke+ trials will be discontinued.

But even though the trial's results disappointed, there's reason to believe the studies weren't a complete failure. Howard Fillit, chief science officer at the Alzheimer's Drug Discovery Foundation, was encouraged by what the studies showed. He said while the trials didn't meet their primary endpoints, they still helped chart the path forward in Alzheimer's research.

"Novo has noted an improvement of Alzheimer's-related biomarkers in both trials," Fillit said, with biomarkers referring to measurable indicators. "We look forward to seeing further results at CTAD, as this may suggest a path forward for semaglutide as part of a combination therapy approach."

Shares of Novo rival Eli Lilly & Co. (LLY), which makes the competing diabetes and weight-loss drugs Mounjaro and Zepbound, gained 0.7% in midday trading. And shares of Biogen Inc. (BIIB), which has an early stage Alzheimer's treatment - Leqembi - which has been approved by the Food and Drug Administration, rose 1.7%.

Also read: Is GLP-1 the new AI? Drugmaker Eli Lilly joins the $1 trillion market-cap club.

The disappointing results didn't come as a surprise to everyone on Wall Street, as Morgan Stanley analyst Thibault Boutherin turned bearish on Novo Nordisk's stock in late September, saying he believed there was a 75% chance the trial would not reach statistical significance. Even Novo had cautioned investors earlier this month that the trial was a "high-risk opportunity."

Given the vast potential of GLP-1s in a wide range of diseases and conditions, investors still had hope for a positive outcome.

Novo Nordisk's stock has now tumbled 48.2% in 2025, which puts it in danger of suffering its worst year since it plunged 57.6% in 1984. Meanwhile Eli Lilly shares have run up 38.2% and the S&P 500 index SPX has advanced 13.8%.

-Tomi Kilgore

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11-24-25 1229ET