Novo Nordisk Secures FDA Approval for Oral Wegovy, Expanding Market Potential
Written by Emily J. Thompson, Senior Investment Analyst
Source: Fool
- Market Breakthrough: Novo Nordisk's FDA approval of oral Wegovy marks the first oral GLP-1 for weight management, expected to attract a significant number of patients and substantially expand the weight management market.
- Competitive Advantage: Oral medications overcome the psychological barriers of injections and are cheaper to produce, potentially increasing market coverage and helping Novo Nordisk regain market share against competitor Eli Lilly.
- Sales Potential: Analysts estimate that label expansions for Wegovy could add over $1 billion to its annual sales, further solidifying Novo Nordisk's leadership in the rapidly growing weight loss market.
- Future Outlook: Novo Nordisk has also filed for approval of CagriSema, which outperformed existing products in clinical trials, demonstrating the company's ongoing innovation capabilities in the weight loss medication sector.
NVO
$51.705+Infinity%1D
Analyst Views on NVO
Wall Street analysts forecast NVO stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NVO is 57.37 USD with a low forecast of 47.00 USD and a high forecast of 70.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
7 Analyst Rating
4 Buy
2 Hold
1 Sell
Moderate Buy
Current: 52.400
Low
47.00
Averages
57.37
High
70.00
Current: 52.400
Low
47.00
Averages
57.37
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.
