Novo stock shrugs off FDA probe

The U.S. FDA communicated on Thursday that it is investigating some findings suggesting increased risk pancreatitis and findings of pre-cancerous cells of the pancreas related to incretin mimetic drugs for type 2 diabetes. These include Novo Nordisk’s (OMX: NOVO B) blockbuster Victoza (liraglutide) among a host of other products. The markets did not seem overly concerned and Novo fell only slightly on the news this week. There is a large array of studies and data available on the matter regarding the GLP-1 agonist, with many finding no such links as well and even as we speak, prescriptions of the drug should involve a risk-benefit analysis. An entirely different matter is that all of these concerns may make it more tenuous to gain an approval in obesity space.