By Mariam ESunny

(Reuters) - Shares of dialysis service providers fell sharply on Wednesday after Novo Nordisk's Ozempic showed early signs of success in delaying the progression of kidney disease in diabetes patients.

Colorado-based DaVita's shares closed down about 17% and U.S.-listed shares of German rival Fresenius Medical ended 17.6% lower.

Novo's announcement is the latest sign of disruption caused by the success of GLP-1 drugs, which have hit shares of food companies, providers of bariatric surgery and glucose-monitoring device makers.

GLP-1 (glucagon-like peptide 1) drugs are used for the treatment of type 2 diabetes and for weight loss.

Shares of U.S.-based Baxter International, which makes products used by dialysis therapy providers, closed down 12.3%.

Danish drugmaker Novo said late on Tuesday it will stop the trial almost a year ahead of schedule based on interim results from the study, which met the pre-set criteria for efficacy according to an independent data monitoring committee.

The dialysis market has for decades been sustained by high rates of obesity and diabetes, which contribute to kidney damage, but GLP-1 drugs such as Novo's Ozempic and Wegovy have been seen to dramatically improve both conditions.

However, the news is not "straightforward" and might have "some positive" aspects for dialysis companies, Morningstar analyst Julie Utterback said.

These drugs could help delay patients' transition to dialysis and keep them on it for longer, which could boost opportunities for dialysis firms in the near term, Utterback said.

The new data from Novo is the "latest piece of positive news" for GLP-1 drugs and continues its clinical advancements, said Wells Fargo analyst Mohit Bansal, adding that success in kidney-disease patients could unlock a population of as many as 5 million patients for such medication.

Frankfurt-listed shares of Fresenius fell 17.4%.

DaVita's price-to-earnings ratio for the next 12 months, a common benchmark for valuing stocks, stood at 11.91, compared with Fresenius Medical's 14.30.

($1 = 0.9434 euros)

(Reporting by Mariam Sunny in Bengaluru; Editing by Janane Venkatraman, Pooja Desai and Maju Samuel)