Analysts see limited Lilly impact from Novo's Alzheimer's setback

Analysts see limited impact on Eli Lilly LLY.N after Danish rival Novo Nordisk's NOVOb.CO closely watched Alzheimer's trials failed to hit the mark

The older oral version of Novo's GLP-1 drug, Rybelsus, failed to help slow progression of the brain-wasting disease in late-stage trials

Lilly's blockbuster weight-loss drug, Zepbound, and Novo's rival drug, Wegovy, also target the appetite-suppressing GLP-1 hormone

Cantor analyst Carter Gould noted that the trial failure shouldn't come as a surprise and that LLY had never pursued a similar strategy and "had only recently moved forward with pursuing neuro indications with their own GLP-1 – and even then had focused on addictions (opioids, alcohol)"

"Though Lilly would have quickly moved an asset (possibly brenipatide; oral GLP-1/GIP agonist) into AD studies had evoke/+ provided some sort of a positive signal, today's failure reads like it has little room for interpretation," Citi analyst Geoff Meacham said

Up to last close, Lilly's shares have gained 37.3% YTD