Sector Update: Health Care Stocks Decline Monday Afternoon
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 23 2024
0mins
Should l Buy NVO?
Source: NASDAQ.COM
Market Performance: Health care stocks experienced a decline, with the NYSE Health Care Index down 0.4% and the iShares Biotechnology ETF falling 1.2%. Novo Nordisk shares dropped 3% ahead of CEO Lars Jorgensen's Senate appearance regarding high weight loss drug costs.
Corporate Developments: Scilex Holding's shares fell 12% after agreeing to pay $2 million to Oramed Pharmaceuticals, which saw a 3% increase. Conversely, Biohaven's shares surged 15% following positive study results for its drug in treating spinocerebellar ataxia.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy NVO?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on NVO
Wall Street analysts forecast NVO stock price to rise
8 Analyst Rating
4 Buy
3 Hold
1 Sell
Moderate Buy
Current: 48.930
Low
42.00
Averages
54.67
High
70.00
Current: 48.930
Low
42.00
Averages
54.67
High
70.00
About NVO
Novo Nordisk A/S is a global healthcare company engaged in diabetes care. The Company is also engaged in the discovery, development, manufacturing and marketing of pharmaceutical products. The Company operates through two business segments: diabetes and obesity care, and biopharmaceuticals. The Company's diabetes and obesity care segment covers insulin, GLP-1, other protein-related products, such as glucagon, protein-related delivery systems and needles, and oral anti-diabetic drugs. The Company's biopharmaceuticals segment covers the therapy areas of hemophilia care, growth hormone therapy and hormone replacement therapy. The Company also offers Saxenda product to treat obesity. It offers a range of products, including NovoLog/NovoRapid; NovoLog Mix/NovoMix; Prandin/NovoNorm; NovoSeven; Norditropin, and Vagifem. As of December 31, 2016, it marketed its products in over 180 countries. Its regional structure consists of two commercial units: North America and International Operations.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Novo Nordisk's CagriSema Shows Promising Potential
- Intensifying Market Competition: Novo Nordisk faces fierce competition in the GLP-1 market from Eli Lilly, as Ozempic has been a key growth driver, but the company anticipates declining sales this year, highlighting the urgent need for next-generation therapies to regain market share.
- CagriSema Clinical Trial Success: CagriSema outperformed Wegovy in a phase 3 clinical trial for overweight or obese patients, achieving an average weight reduction of 22.7% after 68 weeks, indicating its potential in weight loss treatment and possibly providing a new growth avenue for Novo Nordisk.
- Regulatory Application Progress: Novo Nordisk has submitted regulatory applications for CagriSema as a weight loss treatment and plans to seek approval for the diabetes indication after completing two additional phase 3 studies, paving the way for future revenue growth.
- Manufacturing Complexity Challenges: Despite CagriSema's efficacy over Ozempic, its higher production costs and complexity compared to semaglutide, along with competition from Eli Lilly's retatrutide, may impact its market performance and overall business outlook.
See More
Investment Potential of Novo Nordisk and AbbVie
- Novo Nordisk Growth Potential: Novo Nordisk's diabetes and obesity care drugs saw a 7% sales increase in fiscal 2025, with obesity care drugs surging by 26%, and experts predict the GLP-1 market will reach $254 billion by 2034, reflecting a robust long-term growth outlook.
- Attractive Valuation: Currently trading at a price-to-earnings ratio of 13, Novo Nordisk's stock price is $49.55, allowing a $500 investment to purchase 10 shares, making it an ideal choice for investors given its strong market position and low valuation.
- AbbVie as a Defensive Investment: AbbVie has risen 24% during the 2022 bear market since its spin-off from Abbott in 2013, showcasing its resilience as a defensive stock, while its dividend has increased for 13 consecutive years, currently yielding 3.1%.
- Future Growth Potential: AbbVie's drugs Skyrizi and Rinvoq achieved net revenue growth of 33% and 30% in 2025, respectively, with analysts forecasting an 11% stock price increase over the next 12 months to $250 per share, highlighting its strong performance amid drug transitions.
See More
Investment Outlook for Pharmaceutical Sector
- Novo Nordisk Growth Potential: As a global leader in GLP-1 drug manufacturing, Novo Nordisk's diabetes and obesity care drugs saw a 7% sales increase in fiscal 2025, with obesity drugs rising 26%, indicating strong market demand and future growth potential.
- Optimistic Market Outlook: Experts predict that the GLP-1 market will grow to $254 billion by 2034, with a compound annual growth rate of 17%, positioning Novo Nordisk to benefit significantly from this rapidly expanding market and further solidify its leadership.
- AbbVie Defensive Investment: Since its spin-off from Abbott Labs in 2013, AbbVie has shown impressive resilience, rising 24% during the 2022 bear market, demonstrating its strength as a defensive stock, while its 3.1% high dividend yield attracts long-term investors.
- Future Growth Potential: AbbVie's drugs Skyrizi and Rinvoq achieved net revenue gains of 33% and 30% in 2025, respectively, with analysts forecasting an 11% stock price increase over the next 12 months to $250 per share, enhancing its investment appeal.
See More
Universities Experience Financial Pressure Despite Strong Results
- Financial Strain on Universities: Universities are facing increased financial pressure due to rising costs.
- Impact of Federal Funding Cuts: President Donald Trump's initiatives to reduce federal funding are affecting many educational institutions.
See More
Market Rebounds as Eli Lilly Prepares for New Drug Launch
- Market Rebound: After a volatile week, the S&P 500 showed signs of recovery on Friday, although it still faced losses over the past five trading days, indicating a renewed investor confidence in the economic outlook.
- Inflation Data Impact: The cooler-than-expected January consumer price index contributed to a drop in bond yields and increased expectations for interest rate cuts later this year, further bolstering investor sentiment.
- Eli Lilly's Drug Inventory: Eli Lilly has built up $1.5 billion worth of pre-launch inventory for its GLP-1 obesity pill orforglipron, significantly up from $550 million last year, indicating strong demand expectations from the market.
- Upcoming Earnings Reports: Approximately 50 S&P 500 companies are set to report earnings next week, including Palo Alto Networks and Texas Roadhouse, with the market closely watching these reports for their implications on the broader economy.
See More
Novo Nordisk Addresses Drug Compounding Issues Amid Competition
- Compounding Challenges: Despite the resolution of the semaglutide shortage, Novo Nordisk continues to face increased drug compounding issues, particularly in the market for its injectable and oral obesity drugs, indicating competitive pressures within the industry.
- Market Expansion Strategy: CEO Mike Doustdar stated that the company will scale its Wegovy pills country-by-country to avoid shortages, with 246,000 people currently using the drug, reflecting strong market demand and potential for growth.
- Competitive Landscape Analysis: Doustdar dismissed concerns regarding competition with Eli Lilly, highlighting that Wegovy achieved a 16.6% weight loss in clinical trials compared to Lilly's 12.4%, providing Novo with a competitive edge in the obesity treatment market.
- Legal Action: Novo Nordisk recently filed a lawsuit against Hims & Hers to prevent the sale of compounded versions of semaglutide, demonstrating the company's commitment to protecting its intellectual property and market share.
See More
Novo Nordisk's CagriSema Shows Promising Potential
- Intensifying Market Competition: Novo Nordisk faces fierce competition in the GLP-1 market from Eli Lilly, as Ozempic has been a key growth driver, but the company anticipates declining sales this year, highlighting the urgent need for next-generation therapies to regain market share.
- CagriSema Clinical Trial Success: CagriSema outperformed Wegovy in a phase 3 clinical trial for overweight or obese patients, achieving an average weight reduction of 22.7% after 68 weeks, indicating its potential in weight loss treatment and possibly providing a new growth avenue for Novo Nordisk.
- Regulatory Application Progress: Novo Nordisk has submitted regulatory applications for CagriSema as a weight loss treatment and plans to seek approval for the diabetes indication after completing two additional phase 3 studies, paving the way for future revenue growth.
- Manufacturing Complexity Challenges: Despite CagriSema's efficacy over Ozempic, its higher production costs and complexity compared to semaglutide, along with competition from Eli Lilly's retatrutide, may impact its market performance and overall business outlook.
See More
Investment Potential of Novo Nordisk and AbbVie
- Novo Nordisk Growth Potential: Novo Nordisk's diabetes and obesity care drugs saw a 7% sales increase in fiscal 2025, with obesity care drugs surging by 26%, and experts predict the GLP-1 market will reach $254 billion by 2034, reflecting a robust long-term growth outlook.
- Attractive Valuation: Currently trading at a price-to-earnings ratio of 13, Novo Nordisk's stock price is $49.55, allowing a $500 investment to purchase 10 shares, making it an ideal choice for investors given its strong market position and low valuation.
- AbbVie as a Defensive Investment: AbbVie has risen 24% during the 2022 bear market since its spin-off from Abbott in 2013, showcasing its resilience as a defensive stock, while its dividend has increased for 13 consecutive years, currently yielding 3.1%.
- Future Growth Potential: AbbVie's drugs Skyrizi and Rinvoq achieved net revenue growth of 33% and 30% in 2025, respectively, with analysts forecasting an 11% stock price increase over the next 12 months to $250 per share, highlighting its strong performance amid drug transitions.
See More
Investment Outlook for Pharmaceutical Sector
- Novo Nordisk Growth Potential: As a global leader in GLP-1 drug manufacturing, Novo Nordisk's diabetes and obesity care drugs saw a 7% sales increase in fiscal 2025, with obesity drugs rising 26%, indicating strong market demand and future growth potential.
- Optimistic Market Outlook: Experts predict that the GLP-1 market will grow to $254 billion by 2034, with a compound annual growth rate of 17%, positioning Novo Nordisk to benefit significantly from this rapidly expanding market and further solidify its leadership.
- AbbVie Defensive Investment: Since its spin-off from Abbott Labs in 2013, AbbVie has shown impressive resilience, rising 24% during the 2022 bear market, demonstrating its strength as a defensive stock, while its 3.1% high dividend yield attracts long-term investors.
- Future Growth Potential: AbbVie's drugs Skyrizi and Rinvoq achieved net revenue gains of 33% and 30% in 2025, respectively, with analysts forecasting an 11% stock price increase over the next 12 months to $250 per share, enhancing its investment appeal.
See More
Universities Experience Financial Pressure Despite Strong Results
- Financial Strain on Universities: Universities are facing increased financial pressure due to rising costs.
- Impact of Federal Funding Cuts: President Donald Trump's initiatives to reduce federal funding are affecting many educational institutions.
See More
Market Rebounds as Eli Lilly Prepares for New Drug Launch
- Market Rebound: After a volatile week, the S&P 500 showed signs of recovery on Friday, although it still faced losses over the past five trading days, indicating a renewed investor confidence in the economic outlook.
- Inflation Data Impact: The cooler-than-expected January consumer price index contributed to a drop in bond yields and increased expectations for interest rate cuts later this year, further bolstering investor sentiment.
- Eli Lilly's Drug Inventory: Eli Lilly has built up $1.5 billion worth of pre-launch inventory for its GLP-1 obesity pill orforglipron, significantly up from $550 million last year, indicating strong demand expectations from the market.
- Upcoming Earnings Reports: Approximately 50 S&P 500 companies are set to report earnings next week, including Palo Alto Networks and Texas Roadhouse, with the market closely watching these reports for their implications on the broader economy.
See More
Novo Nordisk Addresses Drug Compounding Issues Amid Competition
- Compounding Challenges: Despite the resolution of the semaglutide shortage, Novo Nordisk continues to face increased drug compounding issues, particularly in the market for its injectable and oral obesity drugs, indicating competitive pressures within the industry.
- Market Expansion Strategy: CEO Mike Doustdar stated that the company will scale its Wegovy pills country-by-country to avoid shortages, with 246,000 people currently using the drug, reflecting strong market demand and potential for growth.
- Competitive Landscape Analysis: Doustdar dismissed concerns regarding competition with Eli Lilly, highlighting that Wegovy achieved a 16.6% weight loss in clinical trials compared to Lilly's 12.4%, providing Novo with a competitive edge in the obesity treatment market.
- Legal Action: Novo Nordisk recently filed a lawsuit against Hims & Hers to prevent the sale of compounded versions of semaglutide, demonstrating the company's commitment to protecting its intellectual property and market share.
See More
