Wegovy maker Novo Nordisk down 4%, heads for worst day since October

Key Facts

• Novo Nordisk expects prices to drop further as new entrants enter the market, CFO Karsten Knudsen said on a media call, adding that the company was not seeing much evidence of Wegovy users moving to other rival treatments.
• Analysts expected even higher weight loss drug sales in the quarter, and some noted that Novo Nordisk’s 2024 outlook raise for both sales growth and operating profit was due to one-off accounting adjustments.
• “While we continue to see Novo as a wide-moat firm, with strong intangible assets surrounding its cardiometabolic business, we think high obesity drug demand and a scarcity of supply have driven share prices above their intrinsic value,” Karen Andersen, strategist at Morningstar, said in a Thursday note.
• The potential increase in competition is hanging over both Novo Nordisk and U.S. juggernaut Eli Lilly, which also raised its outlook this week, as more weight loss players emerge to shake up what has largely been a two-horse race.

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