Novo Nordisk (NOVOb.CO), the Denmark-based global healthcare giant, announced on Tuesday that it decided to stop the Ozempic kidney outcomes trial as early results delivered conclusive positive outcomes. This announcement plunged the shares of companies providing dialysis services.
Success of Ozempic kidney failure trials proves disastrous for dialysis stocks
The company indicated the trial would come to an end, approximately a year before scheduled completion, following a recommendation from an independent data monitoring committee. Ozempic, a treatment commonly used for Type 2 Diabetes, contains semaglutide. The trial aimed to discover if it could stem the progress of kidney disease and help with associated complications.
After the public statement, Novo Nordisk shares rose by 2.5% during extended trading. Other companies in the kidney business experienced the opposite.
On Wednesday, DaVita (DVA.N) shares plummeted by 16% to around $72.62 per share. The stock of its German nemesis, Fresenius Medical (FMEG.DE), also came under the knife and dropped by 16.7% to approximately $14.44 a share.
Don’t miss out the latest news, subscribe to LeapRate’s newsletter
Similarly, associated markets, such as Baxter International (BAX.N), that produces items used in dialysis therapies, also suffered. This particular company’s shares dropped by 5.8% to roughly $35.14.
Experts stated that the dialysis industry gained its many riches from the high prevalence of diabetes and obesity, which greatly contribute to kidney problems. However, Novo’s Ozempic and Wegovy, a drug widely used to treat obesity, significantly bettered these conditions. In its media statement, Novo said:
Based on the decision to stop the trial at interim, the process of closing the trial will be initiated. To protect the integrity of the trial, Novo Nordisk remains blinded to the results until trial completion.
