GLP-1 drugs like Ozempic and Zepbound have been heralded as an 'everything' cure -- first they solved weight gain, soon they might attack MASH (metabolic dysfunction-associated steatotic steatohepatitis), and there might be many more indications like long Covid.
Alzheimer's, however, won't be one of them.
On Monday morning Ozempic maker Novo Nordisk said that a Phase 3 study evaluating the weight-loss blockbuster for Alzheimer's failed to reach its primary endpoint. Novo's executive VP of R&D says that the company pursued the study based on "significant unmet need in Alzheimer's as well as a number of indicative data points," but the study was largely seen as a long shot.
The news sent Novo Nordisk shares down more than 10%, pulling down rival Eli Lilly in the process. But heading into midday Eli Lilly is gently back in the green. In fact it just eclipsed a $1 trillion market capitalization -- becoming the first pharma company to reach that milestone. Much of that optimism has come from the high hopes around GLP-1 drugs and other cures.
Monday Reading:.
That $1 trillion milestone might feel small next to some of the $4 trillion giants we've seen in recent months: Nvidia, Apple and Microsoft for three. And soon another giant might be joining the $4 trillion group: Google parent Alphabet is just 5% away after a week-long rally, which has come in the absence of strength from its tech peers.
All this said, the market is looking fine today for the longs. The Nasdaq (+2.3%) is out front, thanks to tech. It's joined by the Russell 2000 (+1.54%), S&P 500 (+1.3%), and Dow (+0.4%). Data from FinViz says 60.4% (3,354) issues are advancing today, lifting hopes for a turnaround to end the year.
TurboTax Via TheStreet
