Shares of Novo Nordisk (NYSE:NVO) are down in today’s trading after a small study published in the medical journal JAMA suggested that there is a link between the healthcare company’s obesity drug semaglutide and an eye disorder called NAION (nonarteritic anterior ischemic optic neuropathy).
NAION is characterized by a loss of blood flow to the optic nerve and is the most common cause of sudden optic nerve injury in people over 50. In fact, it affects about 10 out of every 100,000 Americans.
The research found that obese or overweight patients taking semaglutide, a GLP-1 receptor agonist, were over eight times more likely to develop NAION compared to those on non-GLP receptor agonist medications. Diabetic patients on semaglutide also showed a fourfold increase in NAION risk.
Interestingly, the study analyzed data from over 16,000 patients treated at Massachusetts Eye and Ear, which is a Harvard-affiliated hospital. Nevertheless, the researchers noted that more studies would be needed in order to confirm these findings.
However, if these findings do end up being confirmed, it could cause some issues for Novo Nordisk. Indeed, Semaglutide, which is marketed as Ozempic for diabetes and Wegovy for weight loss, is the company’s blockbuster drug and is one of the leaders in the U.S. anti-obesity drug market. If there is a direct link between the drug and NAION, then it could have a big impact on the company’s profitability.
Is Novo Nordisk a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on NVO stock based on six Buys, one Hold, and one Sell assigned in the past three months, as indicated by the graphic below. After a 73% rally in its share price over the past year, the average NVO price target of $142.36 per share implies 3.69% upside potential.
