Novo Nordisk (NVO) shares rallied greater than 6% in the present day after the Meals and Drug Administration (FDA) authorized Wegovy for treating metabolic dysfunction-associated steatohepatitis (MASH).
Buyers are cheering NVO shares additionally as a result of the pharma large stated cash-paying U.S. prospects can now entry its blockbuster diabetes drug, Ozempic, at an enormous low cost ($499 per 30 days).
Novo Nordisk inventory has struggled this 12 months amid intense competitors within the weight-loss house with Eli Lilly (LLY). At writing, it’s down greater than 40% versus its year-to-date excessive.
FDA’s approval for Wegovy as a therapy of MASH is meaningfully constructive for NVO inventory because it deepens the corporate’s scientific footprint past weight problems, unlocking a brand new income stream in liver illness.
In the meantime, providing Ozempic on to prospects by way of a number of on-line channels for $499 per 30 days to cash-paying U.S. purchasers broadens entry to its most profitable drug, probably boosting prescription quantity and market share.
Collectively, these strikes reinforce Novo Nordisk’s dominance within the GLP-1 market whereas addressing affordability issues, strengthening industrial outlook and investor confidence in its pipeline and pricing technique.
Briefly, these two catalysts may drive long-term progress, probably unlocking vital upside in Novo Nordisk shares over time.
In response to TD Cowen analysts, the year-to-date decline in Novo Nordisk inventory is a chance for long-term buyers, and the agency’s GLP-1 bulletins in the present day feed proper into their constructive view.
The funding agency stays constructive because the NovoCare program is driving strong demand for Wegovy, and the administration is dedicated to advancing CagriSema and cagrilintide monotherapy, addressing prior trial limitations.
Furthermore, the Danish agency’s Alzheimer-focused EVOKE trial displays strategic growth into excessive impression therapeutic areas, reinforcing its innovation pipeline and long-term progress potential.
TD Cowen didn’t, nevertheless, share a worth goal for NVO inventory that at the moment pays a wholesome 2.2% in dividend yield.
