Study success from Novo Nordisk
Fresenius and FMC investors panic
October 11, 2023, 10:46 a.m
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The active ingredient semaglutide is increasingly proving to be pure gold for the Danes at Novo Nordisk – and for patients. The agent contained in the weight loss medication Wegovy is also in the diabetes medication Ozempic – and, according to a study, also helps in the treatment of kidney disease and its consequences. Not good news for investors in the dialysis market.
Positive study results with the diabetes drug Ozempic from Novo Nordisk in kidney patients are putting the papers of the healthcare group Fresenius and its subsidiary Fresenius Medical Care (FMC) under massive pressure. The Danish pharmaceutical company had announced that it would prematurely terminate a study with the diabetes drug Ozempic because an interim analysis made it clear that the treatment would be successful, the company said.
The study examined whether the diabetes drug, which contains the active ingredient semaglutide, could delay the progression of chronic kidney disease and reduce the risk of death from kidney and heart problems. Semaglutide is also the active ingredient in Novo Nordisk’s powerful weight loss drug Wegovy.
The good news for patients and those potentially affected is bad news for companies that offer dialysis treatments, according to an analyst. Investors then almost panicked and threw papers from the dialysis company FMC onto the market. The shares temporarily lost more than 20 percent and also dragged the parent company Fresenius into the depths. The Fresenius shares are cheaper by up to 13 percent. Fresenius holds 32 percent of FMC. Novo shares rose more than 3.5 percent following the news. In contrast, the papers from manufacturers of pharmaceutical packaging such as syringes benefited: Gerresheimer temporarily increased by two percent, Schott Pharma by 1.2 percent.
FMC is the largest player in the dialysis market
Ozempic is available in a pre-filled pen and is injected under the skin. It has been approved for the treatment of diabetes for several years. Novo also tested the drug in a clinical trial to treat kidney failure in diabetes patients. The Danish pharmaceutical company stopped this study, which started in 2019, almost a year earlier than expected. The independent review board may recommend early termination of a trial if there is clear evidence of the success or failure of a drug based on interim analyses.
FMC is the world’s largest player in the $50 billion market for dialysis and similar devices that help people with kidney failure filter toxins from the blood. The company’s annual sales, most recently 19.4 billion euros, have been supported for decades by high rates of obesity and diabetes, which contribute to kidney damage.
But the dialysis market is changing as new medications are proven to improve the conditions that lead to kidney failure. In addition to Ozempic, these also include Farxiga from AstraZeneca and Jardiance from Boehringer Ingelheim and Eli Lilly.