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U.S. Approves Novo Nordisk’s (NVO) Ozempic Drug to Treat Kidney Disease
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U.S. Approves Novo Nordisk’s (NVO) Ozempic Drug to Treat Kidney Disease

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The pharmaceutical company is a leader in revolutionary GLP-1 medications.

The U.S. Food and Drug Administration (FDA) has approved pharmaceutical company Novo Nordisk’s (NVO) Ozempic medication to treat chronic kidney disease in people with Type 2 diabetes.

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The FDA approval expands the use of the Danish company’s wildly popular diabetes treatment within the U.S. market. The drug is already used and covered by medical insurance plans to treat Type 2 diabetes. The FDA’s decision means Ozempic can now be used to also reduce the impacts of kidney disease, kidney failure, and death from cardiovascular disease in patients who are afflicted with diabetes.

The decision could transform how doctors treat patients with chronic kidney disease, which involves a gradual loss of kidney function and is one of the leading causes of death in the U.S. Around 37 million American adults are living with chronic kidney disease, said Novo Nordisk in a written statement. European regulators approved Ozempic for the same use last December.

Risk Factors

Diabetes is a leading risk factor for kidney disease. Roughly 40% of Type 2 diabetes patients also have kidney disease, which can cause other ailments such as cardiovascular problems. The expanded use of Ozempic also demonstrates that a blockbuster class of diabetes and weight loss drugs known as “GLP-1s” have health benefits that go beyond regulating blood sugar and suppressing people’s appetites.

The FDA’s decision to expand the use of Ozempic also comes as Novo Nordisk faces increased competition from its U.S. pharmaceutical rival Eli Lilly (LLY), which makes competing GLP-1 medications. In clinical trials, Ozempic reduced the risk of kidney failure, reduction in kidney function, or death from kidney or heart causes by 24% in diabetic patients.

NVO stock has declined 21% in the last 12 months.

Is NVO Stock a Buy?

The stock of Novo Nordisk has a consensus Moderate Buy rating among nine Wall Street analysts. That rating is based on six Buy, two Hold, and one Sell recommendations issued in the last three months. The average NVO price target of $110.08 implies 29.22% upside from current levels.

Read more analyst ratings on NVO stock

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