The Food and Drug Administration ensures that the benefits of newly approved drugs outweigh their potential side-effects. However, it's not always easy to predict which way the FDA will decide, and sometimes its decisions are very hard to interpret.

In the following video, health care analyst Max Macaluso discusses why two recent FDA decisions regarding diabetes medications developed by Novo Nordisk (NYSE:NVO) and Johnson & Johnson (NYSE:JNJ) surprised him this year, and how these decisions can impact investors.