DaVita sees limited impact from Ozempic's kidney trial success

Bengaluru: Dialysis firm DaVita said on Thursday Novo Nordisk's Ozempic may only benefit some kidney disease patients, a day after its shares slumped due to the early success of the diabetes drug in a trial.

Shares of DaVita rose about 2 per centbefore turning negative in early trade. Stock closed 17 per cent lower on Wednesday.

The Denver, Colorado-based company said it was closely monitoring developments related to GLP-1 drugs such as Novo's Ozempic and weight-loss drug Wegovy.

The dialysis market has for decades been sustained by high rates of obesity and diabetes, which contribute to kidney damage, but GLP-1 drugs have shown to dramatically improve both conditions.

Shares of dialysis service providers including DaVita slumped on Wednesday after Ozempic showed early signs of success in delaying the progression of kidney disease in diabetic patients.

GLP-1 drugs could shrink the size of the eligible dialysis population over time, according to Citi analysts.

DaVita provides kidney care services to patients in the United States through a network of outpatient clinics and at-home dialysis services.

DaVita estimates less than 10 per cent of all patients with chronic kidney disease would be eligible for treatment with Ozempic based on Novo's study requirements, and added that further studies will be required to determine whether the drug could benefit rest of the patient population.

The study tested Ozempic in diabetic patients with chronic kidney disease as an additional treatment to the initial standard-of-care therapy, the Danish drugmaker said, adding that it expects detailed results in the first half of 2024.