Novo Nordisk
Note: This is a daily stock update and the information stands true as of 23/09/24, 09:00 CEST.
Company Update:
Couple of negative news:
A/ On Friday, shares dropped after disappointing phase 2 results for Monlunabant (acquired during the Inversago pharma deal for $1bn in 23). Efficacy for the oral weight loss drug was limited with only 6% of weight loss vs mgt expectations of 15%.
B/ S senator Bernie Sanders is intensifying pressure on Novo Nordisk to reduce the prices of its diabetes and weight-loss drugs Ozempic and Wegovy, respectively. Sanders has accused the firm of “ripping off” Americans with high drug prices.
Expert Opinion:
These are negative news indeed but need to be relativized. First, ahead of the US elections, the rhetoric of curbing drugs prices is a classic especially in the Democrat playbook. Bear in mind that the pressure is due to the massive success of Ozempic and Wegovy. Also it is worth remembering that Eli And Lily cannot supply enough of the product. Currently the US is the main market and its pricing there is elevated. One can imagine that the companies could therefore switch sales to other markets if the US market was to become less profitable than others. Negative indeed as prices will eventually go down but this is likely factored in all the analysts models.
Also, Monlunabant is not the only oral weight loss drug developed by Novo. In our opinion, Novo’s most promising drug is a phase 3 drug which demonstrated similar (if not better) results than injectable GLP1. The failure (word is a bit strong) of Monlunabant doesn’t really change the prospect for oral weight loss for Novo. Actually, it also demonstrates that developing an efficient oral weight loss drug isn’t easy.
Novo shares are down 15% from their June highs. This is a clear buy and hold in my opinion.
For daily updates, subscribe to our newsletter and for detailed daily updates, reach out to us at sales@alphavalue.eu
Company Update:
Couple of negative news:
A/ On Friday, shares dropped after disappointing phase 2 results for Monlunabant (acquired during the Inversago pharma deal for $1bn in 23). Efficacy for the oral weight loss drug was limited with only 6% of weight loss vs mgt expectations of 15%.
B/ S senator Bernie Sanders is intensifying pressure on Novo Nordisk to reduce the prices of its diabetes and weight-loss drugs Ozempic and Wegovy, respectively. Sanders has accused the firm of “ripping off” Americans with high drug prices.
Expert Opinion:
These are negative news indeed but need to be relativized. First, ahead of the US elections, the rhetoric of curbing drugs prices is a classic especially in the Democrat playbook. Bear in mind that the pressure is due to the massive success of Ozempic and Wegovy. Also it is worth remembering that Eli And Lily cannot supply enough of the product. Currently the US is the main market and its pricing there is elevated. One can imagine that the companies could therefore switch sales to other markets if the US market was to become less profitable than others. Negative indeed as prices will eventually go down but this is likely factored in all the analysts models.
Also, Monlunabant is not the only oral weight loss drug developed by Novo. In our opinion, Novo’s most promising drug is a phase 3 drug which demonstrated similar (if not better) results than injectable GLP1. The failure (word is a bit strong) of Monlunabant doesn’t really change the prospect for oral weight loss for Novo. Actually, it also demonstrates that developing an efficient oral weight loss drug isn’t easy.
Novo shares are down 15% from their June highs. This is a clear buy and hold in my opinion.
For daily updates, subscribe to our newsletter and for detailed daily updates, reach out to us at sales@alphavalue.eu
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