A new study has revealed that GLP-1 drugs, such as Novo Nordisk’s (NVO) semaglutide (Ozempic and Wegovy), may reduce the risk of developing Alzheimer’s disease in patients with type 2 diabetes. Researchers looked at the medical records of nearly one million diabetes patients and found that those taking semaglutide were 40-70% less likely to be diagnosed with Alzheimer’s than those using other diabetes drugs.
Although the study did not include Eli Lilly’s (LLY) tirzepatide (Mounjaro), it suggests that GLP-1 drugs could play a significant role in reducing Alzheimer’s risk. Novo Nordisk is also conducting its own trials on semaglutide’s effects on Alzheimer’s, with results expected in 2025.
These findings build on earlier research that showed another GLP-1 drug, Victoza (liraglutide), could slow Alzheimer’s progression, which makes this class of drugs a promising area for future research in treating cognitive decline and neurodegenerative diseases. Nevertheless, shares of NVO are down at the time of writing.
Eli Lilly Challenges Novo Nordisk in Denmark’s Weight-Loss Drug Market
In a separate development, Eli Lilly is preparing to launch its weight-loss drug Mounjaro in Denmark, where 19% of Denmark’s population is considered obese. This will put it into direct competition with Novo Nordisk’s Wegovy in its home market. Priced at DKK 2,200 per month, Mounjaro is set to compete with Wegovy, which costs between DKK 1,313 and DKK 2,353 monthly.
Mounjaro is already approved in the EU for weight loss in people with a body mass index (BMI) of 30 or higher. It is also used for diabetes treatment. Mounjaro’s upcoming launch in Denmark follows its successful introduction in several other European countries.
Which Stock Is Better, Eli Lilly or Novo Nordisk?
Turning to Wall Street, out of the two stocks mentioned above, analysts think that NVO stock has more room to run than LLY. In fact, NVO’s price target of $154.25 per share implies more than 35% upside versus LLY’s 17.56%.
