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.

Max Macaluso, Ph.D. has no position in any stocks mentioned. The Motley Fool recommends Johnson & Johnson. The Motley Fool owns shares of Johnson & Johnson. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.