Shares in pharmaceuticals group Novo Nordisk (NVO) remained in good shape today despite reports that its weight loss drugs could cause vision loss.
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Side Effect
The European Medicines Agency’s (EMA) safety committee said that Novo Nordisk’s weight-loss and diabetes drugs Wegovy and Ozempic may in very rare cases cause a serious eye condition that can lead to vision loss. However, NVO stock rose 2.5% in early trading.
There have been previous studies which have shown that in type-2 diabetes patients there are links between Ozempic and the condition called non-arteritic anterior ischemic optic neuropathy (NAION). But this is the first time a regulator has confirmed the side effect.
The EMA said that the condition may affect up to 1 in 10,000 people taking semaglutide, the active ingredient in Wegovy and Ozempic as well as in Novo’s other diabetes drug Rybelsus.
The EMA has asked Novo Nordisk to add NAION as a side effect of very rare frequency in the product information accompanying drugs that contain semaglutide.
Novo Makes its Case
Novo said it would collaborate with the EMA in updating the labels, but clinical trials and after-market studies of the drugs did not suggest a reasonable possibility that they cause the condition.
It comes only a day after regulators in the U.K. raised concerns about the lack of safety data for pregnant women taking weight loss drugs including Eli Lilly’s Mounjaro.
It is unclear whether the U.S. Food and Drug Administration is also conducting a probe into the side effect.
What is clear is the growing demand for weight loss products. Globally, about 3.8 billion people over 25 and just under 750 million children and young people will be overweight or obese by 2050.
Is NVO a Good Stock to Buy Now?
On TipRanks, NVO has a Hold consensus based on 3 Buy, 4 Hold and 1 Sell rating. Its highest price target is $139.59. NVO stock’s consensus price target is $92.60 implying a 23.78% upside.
