Morgan Stanley says impact to Lilly GLP-1 opportunity from NAION link ‘very low’

Morgan Stanley notes that following a JAMA publication discussing an increased risk of nonarteritic anterior ischemic optic neuropathy, or NAION, in patients who received Novo Nordisk’s (NVO) semaglutide that the firm received some inbound questions on the GLP-1 safety profile. In an accompanying editorial in JAMA discussing the study, the author noted that at this time the potential risk of NAION should not deter the use of GLP-1s in people with type 2 diabetes or obesity, notes the analyst, who also notes Novo Nordisk has commented that the risks aren’t something they have seen in their extensive clinical trial programs or pharmacovigilance surveillance, which is why it is not noted in the label. From an Eli Lilly (LLY) perspective, any link between NAION and GLP-1s remains subject to further exploration, but at this point the firm sees the risk and potential impact to the commercial opportunity as “very low,” the analyst tells investors. The firm maintains an Overweight rating and $1,023 price target on Eli Lilly shares.