Novo Nordisk ( NVO ) fell 5.6% today, due to their star drug semaglutide failing in the Phase II trial for Alzheimer’s disease.

This drug is a bestseller for diabetes and weight loss, and the company wants to see if it can treat Alzheimer's disease. What was the result? There was an improvement in biomarkers, but it actually did not slow the progression of the disease—meaning the trial was a failure.

Interestingly, Novo Nordisk itself stated that the probability of success for this trial was originally very low, but investors were still spooked. Coupled with the increasingly fierce competition in the obesity market, it is not surprising that the stock price is under pressure.

However, in the long term, the fundamentals of this company are still good, and there may be buying opportunities due to short-term fluctuations.