Novo Nordisk (NYSE: NVO) might have one of the hottest products on pharmacy shelves right now, but its stock went cold on Thursday. Following a downbeat note from an analyst tracking the company, its share price was nearly 4% down in late-session trading. The author of the note was Jefferies' Peter Welford, who reiterated his underperform (read: sell) recommendation on Novo Nordisk shares.
Pharmaceutical majors Eli Lilly (NYSE:LLY) and Novo Nordisk (NYSE:NVO) have experienced a significant increase in their market value on Thursday, driven by the potential of their weight-loss drugs, GLP-1s, to address the global obesity epidemic. This optimism has propelled sales forecasts into the hundreds of billions. However, this same optimism has negatively impacted companies that have traditionally profited from treating obesity-related complications.
Leading pharmaceutical companies, Novo Nordisk (NYSE:NVO) and Eli Lilly (NYSE:LLY), are anticipated to see significant revenue growth from their newly developed obesity drugs, according to financial analysts' predictions. These medications, known as GLP-1 receptor agonists, are considered the safest and most effective weight-loss drugs currently available. They offer potential body weight reductions of up to 20% and could also diminish patients' risk of heart attack or stroke.