Novo Nordisk's Ozempic Shows Remarkable Efficacy in Kidney Failure Trial, Triggering Sharp Pre-Market Declines in Dialysis Stocks

　　Novo Nordisk(NVO.US) announced on Tuesday evening that its diabetes drug Ozempic had shown significant effects earlier than expected in a renal failure study, impacting the world's largest kidney dialysis service provider.Fresenius Medical Care (FMS.US)The stock price is under pressure, with the share falling nearly 20% pre-market.

Novo Nordisk stated that an independent data monitoring committee recommended stopping the study named FLOW after a mid-term analysis found that the pre-set efficacy criteria had been met. The Danish pharmaceutical company is expected to obtain the full results of the study after its completion in the first half of 2024.

Fresenius Medical (FMS.US), a kidney dialysis service provider, saw its share price plunge 20% at one point in Frankfurt, hitting a record low and wiping out 2.3 billion euros ($2.4 billion) in market value, while also plummeting nearly 20% in pre-market trading in the U.S. Novo Nordisk's shares rose by 4%. Other kidney-related stocks, such as DaVita (DVA.US) andBaxter International(BAX.US) also plummeted significantly in after-hours trading on the US stock market, and continued to crash during today’s pre-market session.

Ozempic and its sister drug Wegovy (used to treat obesity) seem to have impacts that go beyond the realms of obesity and diabetes. Another large-scale study recently showed that Wegovy can reduce the risk of heart attacks and strokes.Walmart(WMT.US) said last week that they saw an impact on shopping demand from people using these drugs.

The FLOW trial began in 2019 to observe the progression of renal function impairment in patients with type 2 diabetes and chronic kidney disease, recruiting over 3,500 participants from 28 countries.

Editorial Responsibility: Guo Mingyu