Novo Nordisk Stock: Is It Still a Smart Buy?
Much like the long-term users of its most popular product, Novo Nordisk's (NYSE: NVO) stock has slimmed down considerably of late. Share prices of the company, which developed and sells weight loss drug Wegovy, have fallen nearly 18% in price since the start of this year. Popularity attracts competition, and investors are growing concerned that the Danish pharmaceutical giant won't be able to compete.I've been a Novo Nordisk bull for quite some time now, and I wouldn't be as spooked by the situation. Here's why.Novo Nordisk got a two-year-plus head start in the white-hot obesity drugs market, when Wegovy became the first GLP-1 drug specifically approved by the Food and Drug Administration (FDA) for that indication in mid-2021. Novo Nordisk's Ozempic was first, but it was used off-label as a weight-loss drug, and had only initially been approved as a diabetes treatment and kidney disease treatment.Continue reading
Much like the long-term users of its most popular product, Novo Nordisk's (NYSE: NVO) stock has slimmed down considerably of late. Share prices of the company, which developed and sells weight loss drug Wegovy, have fallen nearly 18% in price since the start of this year. Popularity attracts competition, and investors are growing concerned that the Danish pharmaceutical giant won't be able to compete.
I've been a Novo Nordisk bull for quite some time now, and I wouldn't be as spooked by the situation. Here's why.
Novo Nordisk got a two-year-plus head start in the white-hot obesity drugs market, when Wegovy became the first GLP-1 drug specifically approved by the Food and Drug Administration (FDA) for that indication in mid-2021. Novo Nordisk's Ozempic was first, but it was used off-label as a weight-loss drug, and had only initially been approved as a diabetes treatment and kidney disease treatment.
