Why Novo Nordisk Stock Dropped Today
Ignore the noise. Novo Nordisk stock is a bargain.
Novo Nordisk (NYSE: NVO), the Danish drugmaker of GLP-1 weight loss drugs Ozempic and Wegovy, slipped 2% through 10:30 a.m. ET Friday after suffering a one-two punch from Reuters and a bank analyst.
On Thursday, Reuters reported weak U.S. prescription data is contributing to investor concerns that Novo Nordisk is no longer a growth stock. Taking a quick cue from the report, Singapore's DBS Bank has flipped 180 degrees, cutting its rating on Novo Nordisk stock from "buy" all the way to "sell."
Let's start with the Reuters report. Ever "since launching its wildly popular weight-loss drug Wegovy in 2021," says Reuters, Novo has trained investors to expect the company's earnings reports to feature regular updates of new and improved sales guidance. In February, however, the company said sales will grow only 16% to 24% this year, which is "a much slower pace than in the past few years."