Novo Nordisk Investors Just Got Terrible News. Should You Sell the Stock?
Denmark-based pharmaceutical giant Novo Nordisk (NYSE: NVO) has been struggling during the past year. Its financial results -- though strong by comparison to most of its peers -- haven't been as good as investors expected. The company has also faced clinical trial setbacks: An otherwise promising weight loss medicine it developed failed to impress the market with its late-stage results.Now, Novo Nordisk is getting even more bad news, thanks to developments from its biggest competitor in the diabetes and obesity drug markets: Eli Lilly (NYSE: LLY). Should investors give up on Novo Nordisk?Novo Nordisk's sales have been growing fast thanks to GLP-1 medicines like Ozempic for diabetes and Wegovy for weight management. In 2024, revenue increased by 25% year over year to 290 billion Danish kroner ($44.7 billion). As of November, the drugmaker held a 55.1% share of the GLP-1 diabetes market, a slight increase from its 54.8% share as of November 2023. However, it could soon see its market share in this area, which it has long dominated, decline.Continue reading
Denmark-based pharmaceutical giant Novo Nordisk (NYSE: NVO) has been struggling during the past year. Its financial results -- though strong by comparison to most of its peers -- haven't been as good as investors expected. The company has also faced clinical trial setbacks: An otherwise promising weight loss medicine it developed failed to impress the market with its late-stage results.
Now, Novo Nordisk is getting even more bad news, thanks to developments from its biggest competitor in the diabetes and obesity drug markets: Eli Lilly (NYSE: LLY). Should investors give up on Novo Nordisk?
Novo Nordisk's sales have been growing fast thanks to GLP-1 medicines like Ozempic for diabetes and Wegovy for weight management. In 2024, revenue increased by 25% year over year to 290 billion Danish kroner ($44.7 billion). As of November, the drugmaker held a 55.1% share of the GLP-1 diabetes market, a slight increase from its 54.8% share as of November 2023. However, it could soon see its market share in this area, which it has long dominated, decline.