Recently, there was a small study published that suggested there is a link between Novo Nordisk’s (NYSE:NVO) obesity drug semaglutide and an eye disorder called NAION. However, another study emerged indicating that using GLP-1 drugs and metformin is linked to a lower risk of certain obesity-related cancers in patients with Type 2 diabetes. As a result, shares were up over 2% at the time of writing.
Published Friday on the JAMA Network Open website, the study revealed that patients taking GLP-1 drugs or metformin had a significantly reduced risk of developing ten obesity-associated cancers compared to those using insulin. However, researchers noted that GLP-1 drugs did not lower the risk more than metformin.
The study, which analyzed electronic healthcare records of about 1.7 million Type 2 diabetes patients prescribed GLP-1 drugs, metformin, or insulin between 2005 and 2018, found statistically significant risk reductions in GLP-1 users for cancers such as gallbladder, pancreatic, ovarian, colorectal, and kidney cancer, among others. The GLP-1 drugs included in the study were first-generation medications like Novo Nordisk’s Victoza and Ozempic (semaglutide) but did not include Eli Lilly’s (NYSE:LLY) Mounjaro, approved in 2022.
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. Furthermore, the average NVO price target of $142.36 per share implies that shares are fairly valued.
