Shares in weight-loss drug maker Novo Nordisk (NVO) climbed today after a study showed a link between the treatment and people battling alcoholism.
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Fewer Heavy Drinking Days
A study carried out by scientists in Denmark discovered that alcoholics who were administered semaglutide – a key ingredient in NVO’s drugs Wegovy and Ozempic – had experienced reduced alcohol consumption, fewer heavy drinking days and a huge decrease in the number of people craving drinks.
The study assessed the efficacy of the drugs among 108 obese patients seeking treatment for alcohol use disorder over a 26-week period. Half were given a placebo, while all received talking therapy, which is talking through someone’s issues with a trained therapist.
At the start of the trial, the patients reported an average of 17 heavy drinking days in the 30 days before the trial started.
After six months, the patients saw heavy drinking days fall to approximately five over a 30-day period, compared to nine days for the placebo group.
What it Means for NVO
The research team was led by experts from the Mental Health Centre Copenhagen and Frederiksberg Hospital.
Professor Anders Fink-Jensen, principal investigator of the study, said: “The results suggest that semaglutide not only affects appetite but also influences the biological mechanisms underlying addiction. This opens the door to complementing existing treatments for alcohol use disorder with a GLP-1 receptor-targeted approach.”
Commenting on the study, Dr Marie Spreckley, research programme manager at the University of Cambridge, said: “Overall, this study provides encouraging early evidence for a potential new treatment approach for people with co-occurring obesity and alcohol use disorder, but larger and longer-term trials in more diverse populations are needed before this can inform routine clinical practice.”
The findings clearly open up a new ‘market’ for Wegovy and Ozempic. Statistics show that around 28 million Americans suffered from alcohol use disorder in the past year.
Is NVO a Good Stock to Buy Now?
On TipRanks, NVO has a Hold consensus based on 1 Buy and 7 Hold ratings. Its highest price target is $47. NVO stock’s consensus price target is $43, implying a 1.44% downside.
