Analysts, investors say Alzheimer's miss adds to Novo's challenges, but fundamentals intact

(Reuters) -Novo Nordisk said on Monday that two late-stage trials testing an older oral version of its semaglutide drug failed to meet their main goal, sending shares of the Danish drugmaker down around 9% to their lowest level since July 2021.

The trials tested whether semaglutide, the active ingredient in Novo’s blockbuster diabetes and weight loss drugs Ozempic and Wegovy, helped slow progression of Alzheimer’s disease. Below are reactions from analysts, investors and Alzheimer’s associations:

MARKUS MANNS, PORTFOLIO MANAGER AT NOVO SHAREHOLDER UNION INVESTMENT

“The Alzheimer opportunity was only partly discounted in Novo’s valuation, but the failure is nevertheless disappointing. The share price drop is exacerbated by the fact that many investors were hesitant to sell or short Novos