The Food and Drug Administration on Tuesday approved Ozempic, the weight loss drug made by Novo Nordisk A/S ( NVO ) , for the treatment of chronic kidney disease in patients who also have type 2 diabetes. 

The Details: According to the Centers for Disease Control and Prevention, more than 35.5 million Americans have chronic kidney disease, often as a complication of type 2 diabetes. The new FDA approval allows for further expansion of Ozempic's use and potential coverage by health insurance plans. 

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The FDA approval "allows us to more broadly address conditions within cardiovascular-kidney-metabolic syndrome, which affects millions of adults and could have serious consequences if left untreated," Anna Windle, a senior vice president at Novo Nordisk ( NVO ), said in a statement Tuesday, per a Bloomberg report. 

Ozempic and other diabetes drugs known as GLP-1s have become popular and also well-known for their high cost. 

Earlier in January, Novo Nordisk's ( NVO ) diabetes and weight loss drugs, Ozempic, Rybelsus, and Wegovy were all added to the U.S. Department of Health and Human Services list of drugs covered under Medicare Part D that have been selected for mandated price negotiations in order to reduce prescription drug costs.

The negotiations will take place in 2025, with the new prices slated to take effect in 2027.

NVO Price Action: According to Benzinga Pro, Novo Nordisk ( NVO ) shares ended Tuesday's session down 2.65% at $85.19. 

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