Low investor expectation for Novo's study testing its weight loss drug in Alzheimer's disease, Leerink says

Investor expectations for results from Novo Nordisk's NOVOb.CO late-stage trials testing its weight loss drug in patients with early Alzhimer's disease are low, analysts at Leerink Partners say

If the trials surprisingly succeed, Eli Lilly's LLY.N stock could trade up on the notion that it could support longer-term patient adherence to GLP-1 drugs and give LLY validation to initiate studies in Alzhimer's disease with its own GLP-1 drugs: diabetes drug Mounjaro and weight-loss therapy Zepbound, brokerage says

Novo is testing semaglutide, the active ingredient in its popular weight loss and diabetes drugs, to see if it can target neuroinflammation in Alzheimer's disease

Trials are expected to be completed this month

Clinical evidence to date of the utility of GLP-1 agonists in Alzheimer's disease patients is not robust - Leerink

Results from Novo's trials "will provide very insightful results regardless of the outcome", brokerage says

Companies are testing weight loss drugs in other conditions such as alcohol addiction and neurological disorders

Up to last close, stock down 43.1% YTD