Novo Nordisk’s semaglutide claims another victim.

German dialysis provider Fresnius Medical Care’s share plunges 22% to EUR 30.96 in the wake of a surprise early trial halt of GLP1 analog semaglutide, marketed as Ozempic, for the treatment of kidney damage in diabetes 2 patients with chronic kidney disease.

The trial was halted as early data has met predefined efficacy endpoints and has wiped out approximately EUR 2.3bn of the market value of the world’s largest dialysis provider.

”We see kidney disease as one of the areas where GLP1s have the potential to negatively impact the size of the relevant patient population over time,” says Citigroup, according to Bloomberg News.

US-based Baxter, which also provides devices for the treatment of kidney disease, fell 3.5% in Tuesday’s aftermarket.

The effects of Ozempic and its sister anti-obesity drug, Wegovy, appear to extend into areas far beyond obesity and diabetes.

Novo Nordisk shares received a significant boost when a study a few months ago showed a reduced risk of heart attack and stroke with Wegovy.

There’s seemingly no end to the potential benefits of semaglutide, which in early studies has also shown signs of reducing cravings for alcohol and tobacco.

Last week, financial house Barclays recommended selling bonds issued by everyone from fast food chains to tobacco manufacturers, citing Novo Nordisk’s semaglutide business.

The growing demand for weight loss products could come at the expense of sales at fast food companies like McDonald’s and tobacco companies like Altria, Barclays strategists is reported to have said.

The drug is also seen to affect consumer shopping habits with Walmart announcing last week that it has seen a change in the shopping behavior of people taking semaglutide.

On Wednesday, Novo Nordisk shares are up 3.8% at DKK 675.

(Translated by DeepL with additional editing by Christian Radich Hoffman)