Why DaVita Stock is Plunging

Novo Nordisk (NVO:US) shares rose in early Wednesday trade after the company said it decided to terminate its once-weekly injectable kidney FLOW trial, which was examining the impact of semaglutide in comparison to a placebo on the progression of renal impairment in individuals with type 2 diabetes and chronic kidney disease. 

The trial met the criteria for early termination due to its efficacy. The results are anticipated to be disclosed during the first half of 2024.

“The decision to stop the trial is based on a recommendation from the independent Data Monitoring Committee (DMC) concluding that the results from an interim analysis met certain pre-specified criteria for stopping the trial early for efficacy,” it is said in the statement.

While Novo Nordisk shares reacted positively to the news, DaVita (DVA:US) stock fell more than 10% as trial results will have a negative impact on this kidney dialysis company.

DaVita shares reacted negatively to the announcement that the kidney-outcomes trial for Novo Nordisk’s highly successful medication, Ozempic, is being terminated prematurely due to positive interim results.

Representative Ro Khanna was trading DVA shares earlier this year. On the other hand, Congressman Daniel Goldman sold NVO shares worth hundreds of thousands of dollars in July. 

Novo Nordisk stock is up 34.2% year-to-date while DaVita stock was trading 19.7% higher based on Tuesday’s close.