Novo Nordisk's Wegovy could reduce heart risks in new trial
According to a new trial study, Novo Nordisk's (NVO) weight loss drug Wegovy may have the added benefit of cutting down risks tied to cardiovascular complications by at least 20%. Yahoo Finance Senior Reporter Anjalee Khemlani joins the Live show to break down the news, how it has affected Novo Nordisk's stock over the course of Monday, and the shares bump medical device developers are seeing today.
For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
Video Transcript
BRAD SMITH: Let's take a look at some of the trending tickers ahead of the open. Novo Nordisk finds its weight loss drug Wegovy has another health benefit. The drug cut the risk of serious cardiovascular events in people with obesity and heart disease in a closely watched trial by 20% here. Over 17,000 people with obesity were in the study here.
I didn't even know that Wegovy's real name was semaglutide, which it is. All of these names just sound like "Star Wars" figures at the end of the day. But they said that some of the beneficial effects were seen consistently across measured cardiovascular endpoints with Wegovy here. So additional types of uses for Wegovy, that could be seen by the Street as another reason to be bullish on the stock.
BRIAN SOZZI: I'll take that one, Seana.
SEANA SMITH: All right, I was going to say, looking at what you're saying.
BRIAN SOZZI: I'm not going to sit here and pretend to be Dr. Sozzi, right? If they sell weight loss drugs and Novo has been really knocking the cover off the ball all year long because of this drug, I continue to look through the prism of food stocks. What does this mean to McDonald's? What does it mean to General Mills? And we heard from a lot of companies that have reported earnings the past few weeks.
These food companies and snacking companies, even like a PepsiCo, they are concerned about the long-term impact of these type of weight loss drugs. So what are they doing now guys, they're actually re-engineering their products, putting in healthier ingredients, cutting package sizes. So it's something to watch. And all the stocks have been hammered!
BRAD SMITH: But doesn't that mean that the executives need to get more, perhaps display a little bit more ingenuity about how you're going to engage with customers.
BRIAN SOZZI: Well, how do you redesign a cupcake?
BRAD SMITH: I mean, look, this is going to save 18 million people's lives a lot a year.
BRIAN SOZZI: That's what--
SEANA SMITH: Next topic.
BRIAN SOZZI: Well, then you'll keep the same price. But that is what they're doing. You're seeing I think the big reinvention of big food in large part of these drugs. But you're not seeing it in the earnings results yet. And I understand why these stocks have sold off. But by and large, a lot of these food companies have had really strong quarters. And this is really more I think concern about the next decade as these weight loss drugs, which aren't cheap, start to proliferate society.
SEANA SMITH: Yeah. And I think that also just points to you mentioned the fact that it costs a heck of a lot. Just what exactly this uptick is going to look like, right? Because when we talk about what the broader impact is obviously beyond these pharmaceutical companies, potentially when we're talking here about consumer staples, a lot of that depends on how many Americans actually jump in and start taking these types of weight loss drugs.
