Biotech
Monday, July 8th, 2024 5:11 pm EDT
Key Points
- Novo Nordisk investors showed minimal reaction to a Harvard report linking semaglutide, present in weight loss drugs like Ozempic and Wegovy, to an increased risk of a rare eye condition known as nonarteritic anterior ischemic optic neuropathy (NAION).
- Analysts downplayed the study’s impact, citing its low-quality evidence and wide error margins, with shares in Novo Nordisk seeing negligible movement despite initial dips.
- Novo Nordisk defended the safety of its drugs, emphasizing that NAION is not listed as an adverse reaction in approved labels, though acknowledging methodological limitations in the study’s data due to a small sample size.
Novo Nordisk investors remained largely unfazed by a recent Harvard Medical School study linking weight loss drugs containing semaglutide to an increased risk of a rare eye condition. The study suggested that patients prescribed semaglutide, found in drugs like Ozempic and Wegovy, faced higher odds of developing nonarteritic anterior ischemic optic neuropathy (NAION), which can lead to vision loss. Despite these findings, market response was subdued, with Novo Nordisk’s shares showing minimal movement, initially dipping before recovering slightly by mid-morning London time. Analysts downplayed the impact of the study, noting that the evidence quality was low and any potential repercussions, such as updated drug labeling, were unlikely to significantly affect market perception. Deutsche Bank analyst Emmanuel Papadakis underscored the drug class’s historically strong safety profile, minimizing concerns about semaglutide’s broader use. Novo Nordisk reaffirmed its commitment to patient safety, highlighting methodological limitations in the study and clarifying that NAION is not listed as an adverse drug reaction in the approved labels of their formulations. Despite ongoing scrutiny over potential side effects like stomach paralysis and pancreatitis, the popularity of semaglutide-based medications has propelled Novo Nordisk to become Europe’s most valuable company, surpassing Denmark’s GDP. Moreover, Wegovy recently gained FDA approval for reducing heart disease risk, underscoring its broader health benefits beyond weight loss and glucose control. While the study raises cautionary flags, it underscores the need for further research to conclusively determine semaglutide’s impact on NAION.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/07/04/novo-nordisk-weight-loss-drugs-linked-to-rare-eye-condition-study.html
