An Ozempic box and contents sit on a table in Dudley, North Tyneside, Britain, October 31, 2023.
George Frey | Reuters
Novo Nordisk investors appeared unfazed on Thursday by a critical Harvard report that linked weight-loss drugs to a rare eye condition.
Semaglutide, which is found in weight-loss drugs including Novo Nordisk’s Ozempic and Wegovy, may be associated with an increased risk for a rare eye disease, according to study conducted by Harvard Medical School.
But analysts said the study’s results were “not a game-changer.” Shares of the Danish pharmaceutical company were little changed on Thursday, falling in early morning trade before rising 0.1% at 11:17am. London time.
The Harvard report found that patients with type 2 diabetes or obesity who are prescribed semaglutide have an increased risk of non-arterial anterior ischemic optic neuropathy (NAION) – a condition that can lead to vision loss in one eye. Patients were more likely to be diagnosed with the eye condition compared to patients who were not prescribed the weight loss drugs, the study found.
While the research paper suggests “some association” with a rare eye event, the quality of the evidence is “very low, the error bars are very wide,” according to Deutsche Bank analyst Emmanuel Papadakis.
The worst-case scenario would likely be a further update to the drug label warning section, which “may not be a game changer,” Papadakis said.
He added that Deutsche Bank generally views semaglutide drugs as “one of the most derided therapeutic classes in the history of the industry from a safety perspective.”
A spokesman for Novo Nordisk said that optic nerve disease NEON not an “adverse drug reaction for marketed semaglutide formulations” according to the approved labels. They added that there are “key methodological limitations” to the study, such as the “small number of subjects” with type 2 diabetes or obesity who were exposed to semaglutide and included in the trial.
“Patient safety is a top priority for Novo Nordisk and we take all reports of adverse events from the use of our medicines very seriously,” the spokesperson said.
The blockbuster drug’s popularity has seen Novo Nordisk rise to become Europe’s most valuable company, valued at more than Denmark’s total gross domestic product last year.
Wegovy has also been shown to have health benefits beyond weight loss and blood sugar regulation. The Food and Drug Administration in March approved it for use in reducing the risk of heart disease.
The drugs, however, have faced scrutiny after some patients reported experiencing stomach paralysis and suicidal ideation while taking them. A study conducted by researchers at the University of British Columbia noted an increased risk of intestinal obstruction, a disorder where food is blocked from passing through the small or large intestine, and pancreatitis, or inflammation of the pancreas.
Drug labels already include warnings about pancreatitis and some guys of bowel obstruction. A change in vision is also listed as a possible side effect for both Ozempic and Wegovy.
The US study, published on Wednesday, analyzed data from 16,827 patients from December 2017 to November last year. The researchers noted that further study is needed to assess whether semaglutide causes the eye condition.
— CNBC’s Jenni Reid contributed to this report.
