Oct 11 Reuters Shares of dialysis service providers DaVita and Fresenius Medical Care fell sharply on Wednesday after Novo Nordisk39;s Ozempic showed early signs of success in treating kidney failure in diabetes patients.

The Danish drugmaker said late on Tuesday it will stop its kidney outcomes trial almost a year ahead of schedule, based on a recommendation from the independent data monitoring board overseeing the study.

The dialysis market has for decades been sustained by high rates of obesity and diabetes, which contribute to kidney damage, but GLP1 drugs such as semaglutide have been shown to dramatically improve both conditions in trials.

Semaglutide, a type of GLP 1 drug, is branded as Ozempic for diabetes and Wegovy for weightloss.

GLP1 drugs could potentially negatively impact the size of the dialysis patient population over time, Citi analyst Veronika Dubajova said in a note.

U.S.listed shares of Fresenius fell 16.4, to 17.5, and Davita fell about 16, to 76.7, in premarket hours. Shares of U.S.based Baxter International, which makes products used by dialysis therapy providers, also fell about 9, to 33.99 premarket.

The announcement makes the rationale for the use of GLP1 drugs, including Eli Lilly39;s Mounjaro, in diabetes patients with chronic kidney disease even stronger, Jefferies analyst Akash Tewari said in a note.

Davita and U.S.listed shares of Fresenius Medical are among the top percentage losers on the New York Stock Exchange.

Frankfurtlisted…