This Beaten-Down Stock Just Jumped By 8%. Time to Buy?

• Pharmaceutical elephantine Novo Nordisk conscionable earned support for an oral mentation of Wegovy.

• This could assistance amended its presumption successful the progressively competitory value nonaccomplishment market.

• Despite immoderate headwinds, determination are respective reasons to see Novo Nordisk's stock.

• 10 stocks we similar amended than Novo Nordisk ›

The past 18 months person been challenging for Novo Nordisk (NYSE: NVO). Clinical setbacks, worse-than-expected fiscal results, and a nonaccomplishment of marketplace stock successful its astir important therapeutic country person each contributed to a important banal terms diminution implicit this period. Is the bleeding over?

Recent regulatory developments successful the U.S. jolted Novo Nordisk's stock terms by arsenic overmuch arsenic 8% successful 1 day. Let's find retired what happened and whether Novo Nordisk is worthy investing in.

Novo Nordisk generates the bulk of its gross from its GLP-1 products, which are approved for the attraction of diabetes, value management, and respective different conditions, including reducing the hazard of large cardiovascular events. One of the company's astir celebrated brands is Wegovy, an anti-obesity medicine. Wegovy is administered subcutaneously erstwhile a week.

However, since galore patients don't similar needles, pharmaceutical leaders person been looking to make value nonaccomplishment therapies that tin beryllium taken orally. Novo Nordisk already had an oral GLP-1 connected the market: Rybelsus. But it isn't indicated for obesity.

The bully quality is that the Denmark-based healthcare elephantine has conscionable earned support from the U.S. Food and Drug Administration for an oral mentation of Wegovy. It is present the archetypal oral GLP-1 approved for value management.

Oral pills for value nonaccomplishment could pull a meaningful fig of patients. Besides overcoming the intelligence obstruction of subcutaneous injections, oral pills are easier and cheaper to manufacture astatine standard for pharmaceutical companies. That means they volition person the quality to scope much patients, possibly astatine a little cost, which whitethorn besides construe to much third-party coverage. These dynamics could importantly grow the full value absorption market.

Novo Nordisk present has a first-mover vantage here, leveraging a well-known marque sanction that patients volition recognize. With the institution losing crushed successful this marketplace to its biggest competitor, Eli Lilly, oral Wegovy volition beryllium a invited summation to its portfolio that could assistance it recapture immoderate mislaid ground, boost top-line growth, and bounce back.

Even though this is simply a triumph for Novo Nordisk, it's worthy pointing retired that Eli Lilly isn't excessively acold behind. The institution precocious announced that it had submitted an exertion to the FDA for orforglipron, which is simply a value nonaccomplishment pill that performed good successful objective trials. One notable effect is that orforglipron helped patients support losing value aft they switched from injectable anti-obesity therapies.