Shares of dialysis service providers, including DaVita (NYSE: DVA) and Fresenius Medical Care (FMS), declined in pre-market trading on Wednesday. That was after Novo Nordisk (NVO), the healthcare company, announced that it was stopping a study early. After an interim analysis, NVO decided to stop testing Ozempic, its diabetes drug, for the treatment of kidney failure.
Novo Nordisk stated in its press release that the FLOW trial evaluated the effect of semaglutide (Ozempic) versus placebo in the treatment of patients with kidney failure and type 2 diabetes. The company stated that it decided to stop the trial “based on a recommendation from the independent Data Monitoring Committee (DMC) concluding that the results from an interim analysis met certain pre-specified criteria for stopping the trial early for efficacy.”
A Reuters report quoted Citi analyst Veronika Dubajova as saying that the early stoppage of the trial could negatively impact dialysis service companies like Fresenius, as drugs like Ozempic could “potentially negatively impact the size of the relevant patient population over time.”
What is the Forecast for NVO Stock?
Overall, Wall Street analysts are bullish about Novo Nordisk with a Strong Buy consensus rating based on a unanimous three Buys. At $108.50, the average Novo Nordisk price target implies 16.6% upside potential.
