DaVita stock soars as weight loss drug unlikely to undermine dialysis

davita (DVA) Stocks entered the profit-taking zone on Tuesday. novo nordisk (NVO) said the weight-loss drug reduced the risk of death in chronic kidney disease patients by 24%.

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Novo announced last year that it had halted the study, called Flow, nearly a year early after reaching success criteria much faster than expected. At that time, DaVita’s stock price fell nearly 17%. DaVita operates dialysis centers that treat patients with: chronic kidney disease.

But on Tuesday, Novo announced the exact metrics for this long-awaited study. This result suggests that weight loss drugs do not compromise the need for dialysis machines.

DaVita shares rose 7.1% to 134.65.Shares of peer dialysis companies Fresenius Medical Care (FMS) also rose 11.2% to 20.76. Meanwhile, Novo Nordisk shares fell 2.6% to 124.65. DaVita stock is nearing its all-time high of 136.48, reached in mid-2021.

In patients with type 2 diabetes and chronic kidney disease, weekly administration of semaglutide reduces the risk of death from renal or cardiovascular complications by 24%. The risk of worsening kidney disease was also lower in the semaglutide group compared with those given a placebo.

DaVita Stock Extends Breakout

DaVita’s stock price soared on this news. profit taking zone, continues from 133.76 to 139.31.Stock prices plummeted cup base with handleFebruary 1 marketsurge.com indicates.

Novo Nordisk now plans to ask the Food and Drug Administration to approve semaglutide (a weight loss drug named Wigovy and a diabetes drug sold as Ozempic) for patients with type 2 diabetes and chronic kidney disease. is.

“We are very excited about Flow’s results showing that 1.0 milligrams of semaglutide reduces the risk of kidney disease progression,” Martin Holst Lange said in a statement. Mr. Lange is Novo’s executive vice president of development.

He noted that about 40% of people with type 2 diabetes also have chronic kidney disease. If approved, semaglutide would be the first drug in its class of GLP-1 agonists to receive approval for this use.Novo’s main competitors are Eli Lilly (Lily) use that drug, tirzepatide.

This story has been corrected to reflect DaVita operations.

Follow Alison Gatlin on Platform X, formerly known as Twitter. @IBD_AGatlin.

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