Novo Nordisk Shares Plunge 15% Post Earnings
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5h ago
0mins
Source: Yahoo Finance
- Post-Earnings Decline: Novo Nordisk's stock plummeted nearly 15% following its earnings report, with an additional 6% drop the next day, indicating significant market concern regarding its future performance.
- Sales Guidance Dismal: The company anticipates a sales hit of 5% to 13% this year, primarily due to intense pricing pressures in the GLP-1 market, particularly from competitors like Eli Lilly.
- Intensifying Market Competition: Cramer highlighted that while Novo Nordisk's quarterly results were decent, its competitive edge in the GLP-1 sector is being eroded by Eli Lilly, potentially leading to further market share loss.
- Cautious Investment Outlook: Cramer suggests that although Novo Nordisk has potential, it should be viewed as a hold rather than a buy, especially given Eli Lilly's strong performance, reflecting a cautious stance on future growth prospects.
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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 54.67 USD with a low forecast of 42.00 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.
8 Analyst Rating
4 Buy
3 Hold
1 Sell
Moderate Buy
Current: 43.340
Low
42.00
Averages
54.67
High
70.00
Current: 43.340
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 Shares Plunge 15% Amid Poor Earnings Guidance
- Sales Outlook Downgrade: Novo Nordisk projects a 5% to 13% decline in adjusted sales for 2023 due to pricing pressures and increased competition in the GLP-1 market, leading to a nearly 15% drop in stock price and shaken investor confidence.
- Stock Performance: Following the earnings report, Novo Nordisk's stock fell from $50.30 to $47.30, resulting in a market cap of $169 billion, reflecting market concerns about future growth, particularly with its newly approved weight loss drug facing stiff competition.
- Investment Opportunity Analysis: Despite the bleak outlook, if demand for the weight loss pill exceeds expectations, there could be upward revisions to guidance, and with the stock trading at just 14 times trailing earnings compared to the S&P 500's 26 times, it presents a potential value buy.
- Long-Term Growth Potential: Novo Nordisk maintains a strong foundation in diabetes and obesity markets, and as the weight loss pill rollout progresses, it could still be a solid investment for the long haul, suggesting investors should remain calm and consider this a buying opportunity.
See More
Novo Nordisk Plans Oral Ozempic Launch in 2026
- Oral Drug Launch: Novo Nordisk plans to launch its oral GLP-1 receptor agonist Ozempic in Q2 2026, following the successful rollout of Wegovy, which is expected to meet the growing demand for oral diabetes medications.
- FDA Approval of New Name: The FDA has approved Ozempic as the name for oral semaglutide doses of 1.5 mg, 4 mg, and 9 mg, further solidifying Novo Nordisk's leadership in diabetes treatment.
- Market Demand Response: A senior executive noted that Ozempic's recognition has led to increased patient inquiries about oral options, with Rybelsus having been available since 2019, demonstrating the company's responsiveness to market needs.
- Label Expansion Application: Novo Nordisk has submitted a supplemental drug application to the FDA seeking to expand Ozempic's dosage to 25 mg, with a decision expected by year-end, which will enhance the competitiveness of its product line.
See More
Novo Nordisk Shares Plunge 15% Post Earnings
- Post-Earnings Decline: Novo Nordisk's stock plummeted nearly 15% following its earnings report, with an additional 6% drop the next day, indicating significant market concern regarding its future performance.
- Sales Guidance Dismal: The company anticipates a sales hit of 5% to 13% this year, primarily due to intense pricing pressures in the GLP-1 market, particularly from competitors like Eli Lilly.
- Intensifying Market Competition: Cramer highlighted that while Novo Nordisk's quarterly results were decent, its competitive edge in the GLP-1 sector is being eroded by Eli Lilly, potentially leading to further market share loss.
- Cautious Investment Outlook: Cramer suggests that although Novo Nordisk has potential, it should be viewed as a hold rather than a buy, especially given Eli Lilly's strong performance, reflecting a cautious stance on future growth prospects.
See More
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Hims & Hers Shares Plunge 13% After DOJ Referral
- Stock Price Drop: Hims & Hers (HIMS) shares fell 13% in after-hours trading on Friday after HHS General Counsel Mike Stuart referred the company to the DOJ for potential violations of drug safety laws, significantly undermining investor confidence.
- FDA Restrictions: FDA Commissioner Martin A Makary announced intentions to restrict the ingredients used by Hims as alternatives to FDA-approved drugs, which could adversely affect the company's product offerings and market competitiveness.
- New Product Launch Context: The investigation coincides with Hims launching a compounded version of Novo Nordisk's (NVO) obesity pill Wegovy on Thursday, creating a stark contrast between market expectations for the product and the negative implications of the investigation, potentially clouding sales prospects.
- Market Reaction Analysis: Investor concerns about Hims' future are evident, as the sharp decline in stock price not only reflects doubts about the company's compliance but may also impact its standing in the highly competitive health product market.
See More
Pfizer Reenters Obesity Drug Market with Promising Trial Data
- Clinical Trial Progress: Pfizer's phase two trial for its obesity drug PF′3944 shows that patients lost an average of 12.3% of their weight compared to placebo over 28 weeks, indicating the drug's efficacy and potentially securing Pfizer a foothold in a competitive market.
- Dose Optimization Strategy: Pfizer plans to use a higher dose in phase three trials, predicting a 16% weight loss at week 28, which could enhance the product's market competitiveness and position it as a 'best-in-class' option.
- Combination Therapy Potential: Pfizer's strategy includes combining PF′3944 with a drug targeting the gut hormone amylin, with early data showing an additive weight loss of 5% by day 8, indicating a stronger weight loss potential with the combination therapy.
- Long-Acting Injection Development: Pfizer is also developing a quarterly GLP-1 injection aimed at providing longer-lasting treatment options, which is expected to meet patient demand for more convenient therapies and further solidify Pfizer's market position in obesity treatment.
See More
Novo Nordisk Shares Plunge 15% Amid Poor Earnings Guidance
- Sales Outlook Downgrade: Novo Nordisk projects a 5% to 13% decline in adjusted sales for 2023 due to pricing pressures and increased competition in the GLP-1 market, leading to a nearly 15% drop in stock price and shaken investor confidence.
- Stock Performance: Following the earnings report, Novo Nordisk's stock fell from $50.30 to $47.30, resulting in a market cap of $169 billion, reflecting market concerns about future growth, particularly with its newly approved weight loss drug facing stiff competition.
- Investment Opportunity Analysis: Despite the bleak outlook, if demand for the weight loss pill exceeds expectations, there could be upward revisions to guidance, and with the stock trading at just 14 times trailing earnings compared to the S&P 500's 26 times, it presents a potential value buy.
- Long-Term Growth Potential: Novo Nordisk maintains a strong foundation in diabetes and obesity markets, and as the weight loss pill rollout progresses, it could still be a solid investment for the long haul, suggesting investors should remain calm and consider this a buying opportunity.
See More
Novo Nordisk Plans Oral Ozempic Launch in 2026
- Oral Drug Launch: Novo Nordisk plans to launch its oral GLP-1 receptor agonist Ozempic in Q2 2026, following the successful rollout of Wegovy, which is expected to meet the growing demand for oral diabetes medications.
- FDA Approval of New Name: The FDA has approved Ozempic as the name for oral semaglutide doses of 1.5 mg, 4 mg, and 9 mg, further solidifying Novo Nordisk's leadership in diabetes treatment.
- Market Demand Response: A senior executive noted that Ozempic's recognition has led to increased patient inquiries about oral options, with Rybelsus having been available since 2019, demonstrating the company's responsiveness to market needs.
- Label Expansion Application: Novo Nordisk has submitted a supplemental drug application to the FDA seeking to expand Ozempic's dosage to 25 mg, with a decision expected by year-end, which will enhance the competitiveness of its product line.
See More
Novo Nordisk Shares Plunge 15% Post Earnings
- Post-Earnings Decline: Novo Nordisk's stock plummeted nearly 15% following its earnings report, with an additional 6% drop the next day, indicating significant market concern regarding its future performance.
- Sales Guidance Dismal: The company anticipates a sales hit of 5% to 13% this year, primarily due to intense pricing pressures in the GLP-1 market, particularly from competitors like Eli Lilly.
- Intensifying Market Competition: Cramer highlighted that while Novo Nordisk's quarterly results were decent, its competitive edge in the GLP-1 sector is being eroded by Eli Lilly, potentially leading to further market share loss.
- Cautious Investment Outlook: Cramer suggests that although Novo Nordisk has potential, it should be viewed as a hold rather than a buy, especially given Eli Lilly's strong performance, reflecting a cautious stance on future growth prospects.
See More
Affluent Families Concerned About Geopolitical Issues, Yet Hesitant to Invest in AI, Crypto, or Gold
Geopolitical Concerns Among Wealthy Families: A report from J.P. Morgan Private Bank reveals that 20% of wealthy single-family offices identify geopolitics as their primary concern.
International vs. U.S. Perspectives: The report highlights that 74% of non-U.S. families and 57% of U.S. families consider geopolitics to be among their top five concerns.
See More
Hims & Hers Shares Plunge 13% After DOJ Referral
- Stock Price Drop: Hims & Hers (HIMS) shares fell 13% in after-hours trading on Friday after HHS General Counsel Mike Stuart referred the company to the DOJ for potential violations of drug safety laws, significantly undermining investor confidence.
- FDA Restrictions: FDA Commissioner Martin A Makary announced intentions to restrict the ingredients used by Hims as alternatives to FDA-approved drugs, which could adversely affect the company's product offerings and market competitiveness.
- New Product Launch Context: The investigation coincides with Hims launching a compounded version of Novo Nordisk's (NVO) obesity pill Wegovy on Thursday, creating a stark contrast between market expectations for the product and the negative implications of the investigation, potentially clouding sales prospects.
- Market Reaction Analysis: Investor concerns about Hims' future are evident, as the sharp decline in stock price not only reflects doubts about the company's compliance but may also impact its standing in the highly competitive health product market.
See More
Pfizer Reenters Obesity Drug Market with Promising Trial Data
- Clinical Trial Progress: Pfizer's phase two trial for its obesity drug PF′3944 shows that patients lost an average of 12.3% of their weight compared to placebo over 28 weeks, indicating the drug's efficacy and potentially securing Pfizer a foothold in a competitive market.
- Dose Optimization Strategy: Pfizer plans to use a higher dose in phase three trials, predicting a 16% weight loss at week 28, which could enhance the product's market competitiveness and position it as a 'best-in-class' option.
- Combination Therapy Potential: Pfizer's strategy includes combining PF′3944 with a drug targeting the gut hormone amylin, with early data showing an additive weight loss of 5% by day 8, indicating a stronger weight loss potential with the combination therapy.
- Long-Acting Injection Development: Pfizer is also developing a quarterly GLP-1 injection aimed at providing longer-lasting treatment options, which is expected to meet patient demand for more convenient therapies and further solidify Pfizer's market position in obesity treatment.
See More
