This Pharmaceutical Giant Fell by 10% After a Setback: Time to Sell the Stock?

• Novo Nordisk's semaglutide failed successful pivotal studies arsenic a attraction for Alzheimer's disease.

• This isn't a important obstacle to the drugmaker's prospects, contempt what the marketplace absorption suggests.

• There are inactive bully reasons to put successful the banal astatine existent levels.

• 10 stocks we similar amended than Novo Nordisk ›

Once a fast-growing pharmaceutical giant, Novo Nordisk (NYSE: NVO) has felt the effects of gravity implicit the past 18 months. The company's shares are down by much than 60% since aboriginal July 2024. One crushed down the company's unspeakable show is that it has faced objective setbacks for different promising candidates wrong its halfway therapeutic area.

The institution precocious announced yet different objective nonaccomplishment -- this time, for its renowned compound, semaglutide, the progressive constituent successful medications specified arsenic Wegovy and Ozempic. Novo Nordisk's shares fell importantly -- by arsenic overmuch arsenic 10% successful 1 time -- pursuing these developments, though they person recovered since. Is this atrocious quality a bully crushed to yet springiness up connected Novo Nordisk?

Novo Nordisk was hoping semaglutide could assistance dainty Alzheimer's illness (AD), a information that affects millions of patients globally with fewer effectual attraction options. With a worldwide aging population, this is simply a occupation that's lone going to get worse. There is, therefore, a precocious unmet request here, 1 that Novo Nordisk was hoping to address. Alas, it doesn't look apt to bash truthful -- astatine slightest not with semaglutide.

The Denmark-based drugmaker reported that successful a brace of signifier 3 studies that lasted 2 years and enrolled a combined 3,808 patients with dementia owed to AD, semaglutide did not confer a objective payment implicit a placebo. It's worthy pointing retired that processing an effectual medicine successful this country was ever going to beryllium challenging for Novo Nordisk. Over the past 2 decades, the overwhelming bulk of attempts person been failures, truthful overmuch truthful that AD has been dubbed the graveyard of experimental drugs.

Even immoderate of the precise fewer objective and regulatory successes successful this country person mixed records. For example, Aduhelm, developed by Biogen and Eisai, was approved by the U.S. Food and Drug Administration, contempt an extracurricular sheet of experts powerfully recommending against it. The result? Physicians and infirmary systems refused to prescribe the medicine contempt its approval, and the squad of Biogen and Eisai yet discontinued it.

Had semaglutide succeeded successful AD, it would person been a boost to the compound's prospects. However, a nonaccomplishment present is what investors should person expected, and it changes small astir the pharmaceutical giant's prospects.