Novo Nordisk Shares Drop After Alzheimer's Drug Trial Fails to Meet Primary Goal
Novo Nordisk announced on November 25, 2025, that its late-stage trials testing semaglutide for Alzheimer's disease failed to meet the primary goal of slowing cognitive decline. According to CNBC, the Danish pharmaceutical company's shares fell to a four-year low following the announcement. The two Phase 3 trials, called EVOKE and EVOKE+, enrolled 3,808 patients aged 55 to 85 with early-stage Alzheimer's disease. Participants received either 14 milligrams of oral semaglutide daily or a placebo over 156 weeks. While treatment with the drug improved Alzheimer's-related biomarkers, this did not translate into delayed disease progression.
Semaglutide is the active ingredient in Novo Nordisk's diabetes drug Ozempic and weight loss medication Wegovy. The company tested Rybelsus, an oral form approved only for type 2 diabetes. Novo will discontinue a planned one-year extension of the studies. Top-line results will be presented at the Clinical Trials on Alzheimer's Disease conference on December 3, 2025, with full results at the 2026 Alzheimer's and Parkinson's Diseases Conference in March.
Limited Treatment Options Drive Research Investment
Alzheimer's disease affects more than 55 million people globally with no cure currently available. The condition represents one of healthcare's most pressing challenges as populations age worldwide. Martin Holst Lange, Novo Nordisk's chief scientific officer, stated the company felt responsible to explore semaglutide's potential despite low likelihood of success. Analysts had called the trial a long shot. UBS estimated just a 10 percent probability of success before results were announced.
Current Alzheimer's treatments include Eli Lilly's Kisunla and Biogen/Eisai's Leqembi, which slow disease progression by up to one third but carry risk of severe side effects. PharmaVoice reports these drugs generated $70 million and $121 million respectively in third quarter 2025, showing steady uptake after initial hesitation. The approval of these medications has created the first disease-modifying treatment options for patients, though adoption has been gradual due to safety concerns including brain swelling and bleeding.
Competitive Pressures Mount for Novo Nordisk
The trial failure compounds existing challenges for Novo Nordisk in its core diabetes and obesity markets. CNBC reports Eli Lilly became the first healthcare company to reach a $1 trillion market capitalization on November 21, 2025, while Novo Nordisk's stock has fallen 50 percent this year. Lilly now controls 57 percent of the GLP-1 market compared to Novo's declining share. The Indianapolis-based company's Mounjaro generated $6.52 billion in third quarter 2025, up 109 percent year-over-year, while Zepbound posted $3.59 billion in sales, an 184 percent increase.
Novo has cut financial guidance multiple times in 2025, citing competition from copycat versions of semaglutide sold by compounders at lower prices. The company announced 9,000 job cuts in September 2025 and replaced its CEO in August. Shares of Biogen rose 2.6 percent following Novo's trial announcement, as investors viewed the failure as eliminating a potential competitor in Alzheimer's treatment.
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