Novo Nordisk stock rose Friday after a study from the University of Oxford showed its diabetes and weight-loss drug, semaglutide, could lower the risk of developing dementia.
Researchers pitted semaglutide against older diabetes medications sitagliptin, empagliflozin and glipizide in a yearlong study of patients with type 2 diabetes. Novo sells semaglutide for diabetes under the brand names Ozempic and Rybelsus.
Patients who received semaglutide had a 48% lower risk of developing dementia compared to the groups that received the other diabetes medicines. This is the "first robust" evidence that the GLP-1 drug class could have a benefit on neurological and psychiatric conditions, the researchers said.
On today's stock market, Novo Nordisk stock jumped nearly 1.6% to 142.07. Shares of Eli Lilly, which makes a similar drug called tirzepatide, rose 1.5%, closing at 948.17.
Novo Nordisk Stock: Alzheimer's Study Ongoing
Researchers also found patients who received semaglutide had a lower risk of developing a form of swelling in the brain called encephalitis. The weight-loss drug also cut down on patients' substance abuse problems, according to the report published in the Lancet medical journal.
Novo Nordisk is officially studying semaglutide in patients with Alzheimer's disease. The study is roughly three years and four months long. Initial results are expected in late 2025, according to ClinicalTrials.gov.
Novo Nordisk stock recently hit an intraday record high at 148.15, MarketSurge shows. Shares have since pulled back slightly, but remain in a buy zone after breaking out of a cup-with-handle base with a buy point at 137.22.
Notably, Novo stock has a strong Composite Rating of 95 out of a best-possible 99. This means the pharma stock ranks in the leading 5% of all stocks when it comes to fundamental and technical measures, according to IBD Digital.
Novo Nordisk stock also ranks No. 27 on the IBD 50 list of elite growth stocks.
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