What's Going On With Kidney Dialysis Provider Stocks Today?
DaVita Inc (NYSE: DVA), Fresenius Medical Care AG (NYSE: FMS), and Baxter International Inc (NYSE: BAX) shares fell sharply in reaction to Novo Nordisk A/S's (NYSE: NVO) stopping semaglutide kidney outcomes trial FLOW based on early signs of efficacy.
The independent data monitoring board overseeing the study concluded that the results from an interim analysis met certain pre-specified criteria for stopping the trial early for efficacy.
Novo Nordisk remains blinded to the results until trial completion. Data readout expected during the first half year of 2024.
The dialysis market has been sustained by high rates of obesity and diabetes, which contribute to kidney damage, but GLP-1 drugs such as semaglutide have been shown to improve both conditions in trials dramatically.
Citing Citi analyst, Reuters noted that GLP-1 drugs could "potentially negatively impact" the size of the dialysis patient population over time.
Reuters also noted that the announcement makes the rationale for using GLP-1 drugs, including Eli Lilly And Co's (NYSE: LLY) Mounjaro, in diabetes patients with chronic kidney disease even stronger, citing Jefferies analyst.
Price Action: DVA shares are down 16.1% at $76.63, FMS stock is down 16.6% at $17.47, and BAX shares are down 7.45% at $34.51 on the last check Wednesday.
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