"Next breakthrough in 'miracle weight loss drug'? Novo Nordisk A/S Sponsored ADR Class B (NVO.US) Alzheimer's disease research results to be announced at the end of the year, Wall Street cautiously optimistic."

Novo Nordisk A/S Sponsored ADR Class B (NVO.US) plans to announce the results of two late-stage studies targeting patients with mild Alzheimer's disease by the end of this year. These trials use oral semaglutide, a key ingredient in the company's flagship diabetes drug Ozempic and weight-loss drug Wegovy. The results of the studies could have a significant impact on the company's stock. Morgan Stanley analysts predict that the stock price of Novo Nordisk A/S Sponsored ADR Class B could rise by 15% or fall by as much as 10%, depending on the results. However, they believe that the probability of the trials being successful is only one in four. Goldman Sachs Group, Inc. analysts stated that although the risk of trial failure is "high," the risk/reward seems to be "clearly skewed to the upside." Will James, fund manager at Guinness Global Investors, stated that any evidence proving that this pharmaceutical company is likely to expand its product range beyond diabetes and obesity treatment, "will be seen as a major positive by the market." James said, "It is worth noting that in analysts' financial models, this is considered a low-probability event. Bulls believe it will only bring upside potential, while bears emphasize that if the trial does not clearly demonstrate the effectiveness of semaglutide in treating Alzheimer's disease, it could have a negative impact on market sentiment." After analyzing retrospective study data, Danske Bank analysts believe that the trials may yield positive results. The analysts said, "There are indications that GLP-1 does indeed have some kind of cognitive protection effect. We believe this is worth considering for investors, especially in the context of the current stock price of Novo Nordisk A/S Sponsored ADR Class B." Developing drugs for Alzheimer's disease is extremely challenging, with hundreds of promising studies ending in failure over the years. Despite some recent breakthroughs, there are currently no drugs that can prevent or reverse the disease. This condition leads to devastating declines in cognitive abilities, memory loss, and changes in personality. Although two new drugs for treating Alzheimer's disease have been approved by US regulatory agencies in the past three years, these drugs can only slow the progression of the disease by about one-third. Additionally, these drugs may cause rare but sometimes fatal brain bleeding. Sebastien Malafosse, portfolio manager at Edmond de Rothschild Asset Management, stated, "If the results are positive, I expect the stock price to increase significantly. It will be a huge surprise."