Denmark’s drug regulator has asked the European Medicines Agency’s safety committee to investigate a possible link between Novo Nordisk’s (NVO) type 2 diabetes drug Ozempic (semaglutide) and a rare eye condition called non-arteritic anterior ischemic optic neuropathy (NAION). This follows two studies from the University of Southern Denmark that suggest semaglutide use leads to an increased risk of the condition.
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NAION is a rare issue affecting small blood vessels at the front of the optic nerve, which can cause sudden vision loss and visual field defects. The Danish Medicines Agency (DMA) reported that 19 cases of NAION might have been triggered as a potential adverse reaction to semaglutide as of December 10.
Although prior evidence wasn’t strong enough to confirm a connection, the new studies strengthen concerns about a link and may provide significant data that warrants further review. The European Pharmacovigilance Risk Assessment Committee (PRAC) will now assess if semaglutide, also the active ingredient in Novo’s weight loss drug Wegovy, is indeed associated with this condition.
Not the News Novo Nordisk Needs
This is not the type of news that Novo Nordisk needs to hear right now about its blockbuster drug, especially since Eli Lilly (LLY) recently released study results showing that its weight-loss drug Zepbound outperformed Novo Nordisk’s Wegovy.
Zepbound users lost an average of 20% of their body weight, compared to nearly 14% for Wegovy, with a higher percentage of Zepbound patients achieving at least 25% weight loss. These factors could possibly boost Eli Lilly’s market share in the weight loss drug market.
Which Stock Is Better, Eli Lilly or Novo Nordisk?
Turning to Wall Street, out of the two stocks mentioned above, analysts think that NVO stock has more room to run than LLY. In fact, NVO’s price target of $147.80 per share implies more than 36% upside versus LLY’s 34%.
