Novo Nordisk's Oral Wegovy Receives FDA Approval, Stock Rises 7.42%
Written by Emily J. Thompson, Senior Investment Analyst
Source: Fool
- FDA Approval: Novo Nordisk's oral Wegovy weight-loss pill received FDA approval, driving the stock price up 7.30% to $51.61, indicating the company's strong leadership in the GLP-1 market and expected to further solidify its market share.
- Surge in Trading Volume: Trading volume reached 6.5 million shares, approximately 283% above the three-month average, reflecting strong investor interest in the new drug launch, which may signal robust future sales growth.
- Market Potential: The oral Wegovy demonstrated an average weight loss of 17% over 64 weeks, and the convenience of not requiring injections is expected to attract more consumers, further driving sales growth and enhancing company performance.
- Competitive Landscape: Novo Nordisk plans to launch Wegovy in January, and investors should monitor the competitive dynamics with other oral weight-loss drugs entering the market to assess future market share and profitability.
NVO
$51.61+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: 48.100
Low
47.00
Averages
57.37
High
70.00
Current: 48.100
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.
