Ozempic’s Ripple Effect Felt in Dialysis Market

Novo Nordisk (NVO) has ended its study of Ozempic’s impact on kidney failure in diabetes patients almost a year ahead of schedule due to strong efficacy signals. The decision was taken following a recommendation from the independent data monitoring board overseeing the study.

Novo’s study demonstrated that semaglutide, the active pharmaceutical ingredient in Ozempic, could delay progression of chronic kidney disease and lower the risk of death from complications. Barclays analyst Emily Field described GLP-1 drugs as having “therapeutic benefits far beyond their original intended purpose.”

The ripple effect has been felt across the dialysis industry, which has been buoyed for decades by growing rates of kidney damage attributable to obesity and diabetes. Ozempic’s significant impact on obesity and diabetes could result in a dramatic reduction in the eligible dialysis population over time, according to Citi analyst, Veronika Dubajova.

Shares of dialysis service providers fell sharply on Wednesday following Novo’s announcement. Fresenius Medical (FMS) finished the day down 17.6% while DaVita (DVA) was down 17%. In Thursday trading, DaVita was down 3.20% to $73.46 while Fresenius had dropped 1.77%.