Healthcare ETFs for the Weight-Loss Drug Boom & Beyond
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 08 2024
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Analyst Views on NVO
Wall Street analysts forecast NVO stock price to rise
8 Analyst Rating
4 Buy
3 Hold
1 Sell
Moderate Buy
Current: 40.460
Low
42.00
Averages
54.67
High
70.00
Current: 40.460
Low
42.00
Averages
54.67
High
70.00
About NVO
Novo Nordisk A/S is a global healthcare company engaged in diabetes care. The Company is also engaged in the discovery, development, manufacturing and marketing of pharmaceutical products. The Company operates through two business segments: diabetes and obesity care, and biopharmaceuticals. The Company's diabetes and obesity care segment covers insulin, GLP-1, other protein-related products, such as glucagon, protein-related delivery systems and needles, and oral anti-diabetic drugs. The Company's biopharmaceuticals segment covers the therapy areas of hemophilia care, growth hormone therapy and hormone replacement therapy. The Company also offers Saxenda product to treat obesity. It offers a range of products, including NovoLog/NovoRapid; NovoLog Mix/NovoMix; Prandin/NovoNorm; NovoSeven; Norditropin, and Vagifem. As of December 31, 2016, it marketed its products in over 180 countries. Its regional structure consists of two commercial units: North America and International Operations.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Novo Nordisk's Etavopivat Trial Achieves Success
- Trial Success: Novo Nordisk's HIBISCUS Phase 3 trial demonstrated that etavopivat significantly reduced vaso-occlusive crises and improved hemoglobin response in 385 patients aged 12 and older over 52 weeks, achieving both co-primary endpoints and confirming the drug's efficacy.
- Safety Profile: The therapy exhibited a safety profile consistent with prior studies, indicating good tolerability, which enhances its potential for clinical application and may offer patients a safer treatment option for sickle cell disease.
- Regulatory Submission Plans: Novo Nordisk intends to submit a regulatory application for etavopivat in H2 2026, marking a critical step toward market entry, and if approved, it could provide new treatment options for sickle cell disease patients.
- Future Results Presentation: The company plans to present detailed trial results at an upcoming medical event, which could further drive interest and research into the drug, potentially attracting more investors and healthcare professionals to its innovative treatment approach.
See More
Hims & Hers Stock Declines Amid Amazon Competition
- Stock Fluctuation: Hims & Hers Health closed at $29.76, down 4.03%, primarily impacted by Amazon's launch of a competing GLP-1 weight-loss program, although it gained 39.33% over the past week.
- Surge in Trading Volume: Trading volume reached 56.7 million shares, about 50% above the three-month average of 37.8 million shares, indicating increased market interest in the stock.
- Intensified Market Competition: Amazon's same-day delivery service poses a threat to Hims & Hers' core business, especially following the resolution of a legal dispute with Novo Nordisk over weight-loss drugs, which has dampened market sentiment.
- Investor Watch: Investors will closely monitor the potential impact of Amazon's new offering on Hims & Hers' revenue and subscriber numbers, particularly as the company is set to announce its Q1 results on May 11.
See More
UnitedHealth Seeks Path to Cover Obesity Drugs
- Insurer Skepticism: UnitedHealth expressed a desire to find a path to cover obesity drugs during discussions with the Centers for Medicare & Medicaid Services, yet notable structural challenges could hinder future Medicare policies.
- Negative Market Reaction: Shares of Novo Nordisk (NVO) and Eli Lilly (LLY) fell 2% on Tuesday as major health insurers raised doubts about the Trump administration's plan, reflecting market concerns over potential Medicare coverage.
- Medicare Coverage Potential: Eli Lilly's CEO indicated that Medicare coverage could facilitate the launch of its new oral obesity drug Foundayo, potentially making 20 to 30 million Medicare beneficiaries eligible for GLP-1 treatments, significantly expanding the market.
- Retail Investor Sentiment: Despite LLY's 11% gain over the past year, NVO's stock has dropped nearly 32%, while retail sentiment on Stocktwits remains bullish, indicating ongoing interest in the obesity drug market.
See More
Amazon Launches GLP-1 Management Program to Transform Weight Loss Treatment
- Market Expansion: Amazon is launching a new GLP-1 management program through its primary care arm, Amazon One Medical, aiming to integrate obesity treatment into routine care, which is expected to significantly enhance patient adherence to long-term weight management.
- Transparent Pricing: The program offers insured pricing starting as low as $25 per month, while cash-paying patients will find oral medications starting at $149 per month and injectable treatments like Wegovy at $299, positioning Amazon competitively in the market despite similar pricing.
- Convenient Services: Amazon Pharmacy will provide on-demand prescription renewals, starting at $29 for message consultations and $49 for video care, which is likely to attract more customers and enhance loyalty and market share.
- Logistical Advantage: Amazon plans to expand its same-day drug delivery service to 4,500 cities by the end of 2026, leveraging its robust logistics network and consumer reach to solidify its position within the healthcare system.
See More
Amazon Launches GLP-1 Weight Loss Program
- Increased Market Competition: Amazon's launch of the GLP-1 management program through One Medical integrates obesity treatment with routine care, likely pressuring shares of companies like Hims & Hers Health and Viking Therapeutics, which fell following the announcement.
- Transparent Pricing: The pricing for GLP-1 medications will start as low as $25 per month for insured patients, aiming to attract more customers by simplifying access to medications and enhancing market share.
- Convenient Drug Delivery: Amazon plans to expand same-day drug delivery to 4,500 cities by the end of 2026, leveraging its robust logistics network to improve customer experience and gain an edge in the competitive weight loss drug market.
- Diverse Treatment Options: Through Amazon Pharmacy, patients can access various GLP-1 medications, including Novo Nordisk's Wegovy and Eli Lilly's Zepbound, further driving the company's expansion into the healthcare sector.
See More
Health Insurers Hesitate on Medicare Weight Loss Drug Coverage
- Uncertainty in Medicare Coverage: Novo Nordisk (NVO) and Eli Lilly (LLY) saw their stock prices decline as health insurers remain undecided on the Trump administration's plans to cover weight loss drugs, indicating market concerns about future policies.
- CVS Health Withdraws: CVS Health (CVS) has opted out of the BALANCE Medicare coverage program, reflecting a lack of confidence among major insurers that could hinder the market adoption of weight loss medications.
- UnitedHealth's Concerns: UnitedHealth (UNH) expressed significant challenges regarding the program's structure during its Q1 earnings call, and while it did not specify its participation, its stance may influence other insurers' decisions.
- Lack of Engagement from Insurers: Other leading insurers like Humana (HUM) and Elevance Health (ELV) did not respond to inquiries about joining the program, showcasing a general hesitance within the industry regarding coverage for weight loss drugs, which could impact future Medicare policies.
See More
Novo Nordisk's Etavopivat Trial Achieves Success
- Trial Success: Novo Nordisk's HIBISCUS Phase 3 trial demonstrated that etavopivat significantly reduced vaso-occlusive crises and improved hemoglobin response in 385 patients aged 12 and older over 52 weeks, achieving both co-primary endpoints and confirming the drug's efficacy.
- Safety Profile: The therapy exhibited a safety profile consistent with prior studies, indicating good tolerability, which enhances its potential for clinical application and may offer patients a safer treatment option for sickle cell disease.
- Regulatory Submission Plans: Novo Nordisk intends to submit a regulatory application for etavopivat in H2 2026, marking a critical step toward market entry, and if approved, it could provide new treatment options for sickle cell disease patients.
- Future Results Presentation: The company plans to present detailed trial results at an upcoming medical event, which could further drive interest and research into the drug, potentially attracting more investors and healthcare professionals to its innovative treatment approach.
See More
Hims & Hers Stock Declines Amid Amazon Competition
- Stock Fluctuation: Hims & Hers Health closed at $29.76, down 4.03%, primarily impacted by Amazon's launch of a competing GLP-1 weight-loss program, although it gained 39.33% over the past week.
- Surge in Trading Volume: Trading volume reached 56.7 million shares, about 50% above the three-month average of 37.8 million shares, indicating increased market interest in the stock.
- Intensified Market Competition: Amazon's same-day delivery service poses a threat to Hims & Hers' core business, especially following the resolution of a legal dispute with Novo Nordisk over weight-loss drugs, which has dampened market sentiment.
- Investor Watch: Investors will closely monitor the potential impact of Amazon's new offering on Hims & Hers' revenue and subscriber numbers, particularly as the company is set to announce its Q1 results on May 11.
See More
UnitedHealth Seeks Path to Cover Obesity Drugs
- Insurer Skepticism: UnitedHealth expressed a desire to find a path to cover obesity drugs during discussions with the Centers for Medicare & Medicaid Services, yet notable structural challenges could hinder future Medicare policies.
- Negative Market Reaction: Shares of Novo Nordisk (NVO) and Eli Lilly (LLY) fell 2% on Tuesday as major health insurers raised doubts about the Trump administration's plan, reflecting market concerns over potential Medicare coverage.
- Medicare Coverage Potential: Eli Lilly's CEO indicated that Medicare coverage could facilitate the launch of its new oral obesity drug Foundayo, potentially making 20 to 30 million Medicare beneficiaries eligible for GLP-1 treatments, significantly expanding the market.
- Retail Investor Sentiment: Despite LLY's 11% gain over the past year, NVO's stock has dropped nearly 32%, while retail sentiment on Stocktwits remains bullish, indicating ongoing interest in the obesity drug market.
See More
Amazon Launches GLP-1 Management Program to Transform Weight Loss Treatment
- Market Expansion: Amazon is launching a new GLP-1 management program through its primary care arm, Amazon One Medical, aiming to integrate obesity treatment into routine care, which is expected to significantly enhance patient adherence to long-term weight management.
- Transparent Pricing: The program offers insured pricing starting as low as $25 per month, while cash-paying patients will find oral medications starting at $149 per month and injectable treatments like Wegovy at $299, positioning Amazon competitively in the market despite similar pricing.
- Convenient Services: Amazon Pharmacy will provide on-demand prescription renewals, starting at $29 for message consultations and $49 for video care, which is likely to attract more customers and enhance loyalty and market share.
- Logistical Advantage: Amazon plans to expand its same-day drug delivery service to 4,500 cities by the end of 2026, leveraging its robust logistics network and consumer reach to solidify its position within the healthcare system.
See More
Amazon Launches GLP-1 Weight Loss Program
- Increased Market Competition: Amazon's launch of the GLP-1 management program through One Medical integrates obesity treatment with routine care, likely pressuring shares of companies like Hims & Hers Health and Viking Therapeutics, which fell following the announcement.
- Transparent Pricing: The pricing for GLP-1 medications will start as low as $25 per month for insured patients, aiming to attract more customers by simplifying access to medications and enhancing market share.
- Convenient Drug Delivery: Amazon plans to expand same-day drug delivery to 4,500 cities by the end of 2026, leveraging its robust logistics network to improve customer experience and gain an edge in the competitive weight loss drug market.
- Diverse Treatment Options: Through Amazon Pharmacy, patients can access various GLP-1 medications, including Novo Nordisk's Wegovy and Eli Lilly's Zepbound, further driving the company's expansion into the healthcare sector.
See More
Health Insurers Hesitate on Medicare Weight Loss Drug Coverage
- Uncertainty in Medicare Coverage: Novo Nordisk (NVO) and Eli Lilly (LLY) saw their stock prices decline as health insurers remain undecided on the Trump administration's plans to cover weight loss drugs, indicating market concerns about future policies.
- CVS Health Withdraws: CVS Health (CVS) has opted out of the BALANCE Medicare coverage program, reflecting a lack of confidence among major insurers that could hinder the market adoption of weight loss medications.
- UnitedHealth's Concerns: UnitedHealth (UNH) expressed significant challenges regarding the program's structure during its Q1 earnings call, and while it did not specify its participation, its stance may influence other insurers' decisions.
- Lack of Engagement from Insurers: Other leading insurers like Humana (HUM) and Elevance Health (ELV) did not respond to inquiries about joining the program, showcasing a general hesitance within the industry regarding coverage for weight loss drugs, which could impact future Medicare policies.
See More
