Medical device makers rise on relief after Wegovy obesity trial data

Penumbra

13/11/2023 15:14

Nov 13 (Reuters) - Shares of U.S. medical device makers
climbed in early trading on Monday as a potential hit from the
cardiac benefits of Novo Nordisk's  NOVOb.CO  Wegovy were seen
as more moderate than initially feared by investors.
    "In our view, several bullets were dodged here," Jefferies
analyst Matthew Taylor said in a note. 
    The heart protective benefits of Wegovy obesity treatment
are due to more than weight loss alone, according to new data
presented by Novo at a major medical meeting on Saturday.
    Heart device maker Penumbra  PEN.N  was the biggest gainer,
up 19%, after the data showed the reduction in risk of non-fatal
stroke was not statistically significant over the length of the
trial. 
    "Investors had feared a significant reduction in strokes.
That didn't materialize," J.P. Morgan analyst Robbie Marcus said
in a note.
    Shares of diabetes care device makers Abbott Laboratories
 ABT.N , Dexcom  DXCM.O , Insulet  PODD.O , Tandem  TNDM.O  and
Medtronic rose between 2% and 8%.
    Inari Medical  NARI.O , which also produces surgical
equipment, were up 6% in morning trade.
    The iShares US Medical Devices ETF  IHI.P  rose 2.3%, eyeing
its biggest one-day percentage gain since April, days after the
fund hit a more than three-year low.

 (Reporting by Leroy Leo in Bengaluru; Editing by Sriraj
Kalluvila)
 ((Leroy.Dsouza@thomsonreuters.com ; https://twitter.com/LeroyLeo7;))