Shares of Novo Nordisk are falling after a report of an open investigation into a possible link between its Type 2 diabetes drug, Ozempic, and thyroid cancer. Yahoo Finance Reporter Anjalee Khemlani breaks down the story.
Video Transcript
RACHELLE AKUFFO: Novo Nordisk seeing its shares falling today under some pressure. This comes as a Danish newspaper reported that there's an open investigation into a possible link between the pharmaceutical company's GLP-1 hormone used in treatments like Wegovy, and Ozempic, and thyroid cancer. Let's bring in Yahoo Finance's Anjalee Khemlani to tell us more. Anjalee, what do we know so far?
ANJALEE KHEMLANI: That's right, Rachelle. As you noted, Novo Nordisk taking a little bit of a hit today over an ongoing investigation into Wegovy and Ozempic, and Ozempic in particular being the drug of focus. This is after a study that came out basically in November of last year pointing to a potential link. The European regulators, the European Medicines Agency, EMA, as it's known, is looking into this and has been looking into this safety signal, which it says does not mean that there is an established link between the two previously similar drugs like Ozempic.
We know that Novo Nordisk, for example, has had drugs with similar formulas over the past 15 years that have been used for type 2 diabetes as well as drugs that have been used similarly for weight loss and for obesity for the last eight years. These have been on the market. These have been used. And so we've seen these sort of signals, especially in the pre-clinical stage over the last several years, but nothing has ever been-- nothing has ever come out in the real world in terms of a link.
And that's something that not only the EMA over in Europe, but also the FDA has been looking into. There's an ongoing case study of these similar drugs since 2010. Now, we had a chance to hear back from both the EMA and the company, the regulator over in Europe saying specifically that they are looking into the, quote, "increased risk of thyroid cancers" with the use of these medicines and that there is just an ongoing situation.
Meanwhile, Novo Nordisk saying that they are continually monitoring and are aware of the request from the regulator and will be delivering data as needed. So it's just a matter of ongoing observations and Novo Nordisk noting in particular the fact that these drugs have been out there on the market and it will just require ongoing studies of the use of them.
Important to point out, Ozempic is the drug that is used for type 2 diabetes in particular. And Wegovy is the one that has been approved for weight loss, specifically for obesity. So two different drug indications but similar formulas. And so that's where this is all coming from. So it has been known for some time.
The European agency did bring it up in their approval process back in January of this year, and they've also listed a bunch of questions for the companies, not just Novo Nordisk. Actually, we do know also that this questionnaire essentially to manufacturers has also gone out to companies like AstraZeneca, Sanofi, and Eli Lilly, which we know also has its Mounjaro poised to be approved as well. So a class of drugs, if you will, is what this applies to and an ongoing study both in Europe and here in the United States on watching the potential of a link here.
RACHELLE AKUFFO: We'll certainly be keeping an eye on that. Thank you for getting us up to speed, our very own Anjalee Khemlani.
