Healthcare, luxury stocks boost STOXX 600 to three-month high By Reuters
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 21 2025
0mins
Should l Buy NVO?
Source: Investing.com
European Market Performance: European shares rose 0.4% on Tuesday, driven by gains in the healthcare and luxury sectors, marking the highest level in three months amid uncertainties surrounding U.S. President Trump's proposed tariffs.
Investor Sentiment and Global Trade Concerns: While the EU expressed readiness to negotiate with Trump to avoid trade conflicts, concerns over potential tariffs led to mixed reactions in various sectors, including a decline in European automakers and basic resources.
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Analyst Views on NVO
Wall Street analysts forecast NVO stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NVO is 54.67 USD with a low forecast of 42.00 USD and a high forecast of 70.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
8 Analyst Rating
4 Buy
3 Hold
1 Sell
Moderate Buy
Current: 47.640
Low
42.00
Averages
54.67
High
70.00
Current: 47.640
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 Expects Earnings Decline in 2026
- Earnings Guidance Decline: Novo Nordisk's 2025 earnings report revealed a grim outlook for 2026, with sales and earnings expected to decline between 5% and 13%, primarily due to lower GLP-1 drug prices in the U.S., indicating significant market pressures and uncertainty regarding future profitability.
- Surge in GLP-1 Demand: Despite these challenges, the company's new GLP-1 pill attracted 170,000 patients within just four weeks of launch, far exceeding management's expectations, highlighting the potential growth opportunities in the weight-loss drug market.
- Increased Market Acceptance: The preference for oral medications over injections among consumers suggests that Novo Nordisk's GLP-1 pill could tap into a larger market, and the pricing agreement with the U.S. government further boosts demand, creating a favorable environment for sales growth.
- Optimistic Long-Term Outlook: Although Novo Nordisk's stock has lost two-thirds of its value since its peak in 2024, the early success of the pill indicates that future volume could offset the pricing pressures expected in 2026, with the CEO's comments reflecting a positive internal outlook for the company's future.
See More
Novo Nordisk Shares Surge After Competitor Withdraws Drug
- Stock Surge: Novo Nordisk shares jumped 8% on Monday following Hims & Hers' announcement to withdraw its copycat weight-loss pill, indicating increased market confidence in Novo Nordisk's products.
- Legal Threats: Novo Nordisk and the FDA had threatened legal action against Hims & Hers, prompting the withdrawal, which not only protects Novo Nordisk's market share but may also reshape competitive dynamics in the industry.
- Market Reaction: Hims & Hers stated on social media that after constructive conversations with industry stakeholders, they decided to stop offering the treatment, a move that could further solidify Novo Nordisk's leadership in the weight-loss drug market.
- Commitment to Safe Care: Hims & Hers emphasized its commitment to providing safe, affordable, and personalized care, and while the withdrawal may impact its trust among consumers, it reflects a strategic pivot in response to regulatory pressures.
See More
Eli Lilly's Dominance in the GLP-1 Market
- Market Leadership: Eli Lilly commands over 60% of the GLP-1 drug market, with Mounjaro and Zepbound driving consistent revenue growth, as evidenced by over $11 billion in combined revenue last quarter, showcasing its competitive edge in the rapidly expanding obesity drug sector.
- Revenue Growth Potential: Analysts project the obesity drug market to approach $100 billion by the end of the decade, and with Lilly's robust position and product pipeline, the company is well-positioned for sustained revenue growth over the coming decades, potentially delivering substantial returns for shareholders.
- Product Efficacy Advantage: Zepbound's superior performance in head-to-head trials against Wegovy further solidifies Lilly's market leadership, while the anticipated approval of orforglipron, which offers easier administration, is expected to generate additional growth and enhance the company's competitive stance.
- Diversified Investment Opportunity: While Eli Lilly alone may not make investors millionaires, its stock remains a valuable component of a diversified portfolio, particularly as the obesity drug market continues to expand, providing potential for significant wealth accumulation for investors.
See More
Hims & Hers Drops 16% Amid Novo Nordisk Lawsuit
- Significant Stock Decline: Hims & Hers Health closed at $19.33 on Monday, down 16.03%, reflecting market concerns over legal risks, particularly following the lawsuit filed by Novo Nordisk.
- Surge in Trading Volume: The company experienced a trading volume of 143.5 million shares, which is 688% above its three-month average of 18.2 million shares, indicating heightened investor anxiety regarding its future.
- Increased Legal Pressure: The lawsuit from Novo Nordisk seeks to prevent Hims & Hers from selling compounded versions of its patented drugs, intensifying the legal and regulatory challenges the company faces, which could impact its market strategy.
- Negative Market Reaction: Hims & Hers has seen a cumulative decline of 26.89% over the past five days, suggesting a waning investor confidence in its business transformation, especially after the announcement to withdraw its copycat obesity drug Wegovy.
See More
Hims & Hers Health Shares Plunge 16.07% Amid Legal and Regulatory Challenges
- Significant Stock Drop: Hims & Hers Health shares closed at $19.33 on Monday, down 16.03% from the previous day, reflecting market concerns over the company's legal lawsuit and regulatory pressures.
- Surge in Trading Volume: The trading volume reached 143.5 million shares, approximately 688% above the three-month average of 18.2 million shares, indicating heightened investor uncertainty regarding the company's future.
- Impact of Legal Action: Novo Nordisk's lawsuit seeks to prevent Hims & Hers from selling compounded versions of its patented drugs, exacerbating market worries about the company's business model, especially following the FDA's crackdown on GLP-1 active pharmaceutical ingredients.
- Urgency of Strategic Shift: Hims & Hers announced last year a pivot towards other health conditions and AI health capabilities, and this incident underscores the urgency of this strategic shift in response to an increasingly challenging market environment and regulatory landscape.
See More
Hims & Hers Health Shares Plunge 16.03%
- Stock Price Drop: Hims & Hers Health closed at $19.33 on Monday, down 16.03%, reflecting investor concerns over the company's legal and regulatory challenges impacting its market perception.
- Surge in Trading Volume: The trading volume reached 143.5 million shares, approximately 688% above the three-month average of 18.2 million shares, indicating heightened market activity and investor interest in the stock's volatility.
- Legal Challenges: Novo Nordisk has filed a lawsuit against Hims & Hers, seeking to prevent the sale of compounded copies of its patented drugs, which intensifies market fears regarding Hims & Hers' operational viability.
- Strategic Shift Importance: Hims & Hers announced it would withdraw its copycat version of the obesity drug Wegovy, pivoting towards other health conditions and AI capabilities, making this strategic shift crucial in light of the current legal and regulatory pressures.
See More
Novo Nordisk Expects Earnings Decline in 2026
- Earnings Guidance Decline: Novo Nordisk's 2025 earnings report revealed a grim outlook for 2026, with sales and earnings expected to decline between 5% and 13%, primarily due to lower GLP-1 drug prices in the U.S., indicating significant market pressures and uncertainty regarding future profitability.
- Surge in GLP-1 Demand: Despite these challenges, the company's new GLP-1 pill attracted 170,000 patients within just four weeks of launch, far exceeding management's expectations, highlighting the potential growth opportunities in the weight-loss drug market.
- Increased Market Acceptance: The preference for oral medications over injections among consumers suggests that Novo Nordisk's GLP-1 pill could tap into a larger market, and the pricing agreement with the U.S. government further boosts demand, creating a favorable environment for sales growth.
- Optimistic Long-Term Outlook: Although Novo Nordisk's stock has lost two-thirds of its value since its peak in 2024, the early success of the pill indicates that future volume could offset the pricing pressures expected in 2026, with the CEO's comments reflecting a positive internal outlook for the company's future.
See More
Novo Nordisk Shares Surge After Competitor Withdraws Drug
- Stock Surge: Novo Nordisk shares jumped 8% on Monday following Hims & Hers' announcement to withdraw its copycat weight-loss pill, indicating increased market confidence in Novo Nordisk's products.
- Legal Threats: Novo Nordisk and the FDA had threatened legal action against Hims & Hers, prompting the withdrawal, which not only protects Novo Nordisk's market share but may also reshape competitive dynamics in the industry.
- Market Reaction: Hims & Hers stated on social media that after constructive conversations with industry stakeholders, they decided to stop offering the treatment, a move that could further solidify Novo Nordisk's leadership in the weight-loss drug market.
- Commitment to Safe Care: Hims & Hers emphasized its commitment to providing safe, affordable, and personalized care, and while the withdrawal may impact its trust among consumers, it reflects a strategic pivot in response to regulatory pressures.
See More
Eli Lilly's Dominance in the GLP-1 Market
- Market Leadership: Eli Lilly commands over 60% of the GLP-1 drug market, with Mounjaro and Zepbound driving consistent revenue growth, as evidenced by over $11 billion in combined revenue last quarter, showcasing its competitive edge in the rapidly expanding obesity drug sector.
- Revenue Growth Potential: Analysts project the obesity drug market to approach $100 billion by the end of the decade, and with Lilly's robust position and product pipeline, the company is well-positioned for sustained revenue growth over the coming decades, potentially delivering substantial returns for shareholders.
- Product Efficacy Advantage: Zepbound's superior performance in head-to-head trials against Wegovy further solidifies Lilly's market leadership, while the anticipated approval of orforglipron, which offers easier administration, is expected to generate additional growth and enhance the company's competitive stance.
- Diversified Investment Opportunity: While Eli Lilly alone may not make investors millionaires, its stock remains a valuable component of a diversified portfolio, particularly as the obesity drug market continues to expand, providing potential for significant wealth accumulation for investors.
See More
Hims & Hers Drops 16% Amid Novo Nordisk Lawsuit
- Significant Stock Decline: Hims & Hers Health closed at $19.33 on Monday, down 16.03%, reflecting market concerns over legal risks, particularly following the lawsuit filed by Novo Nordisk.
- Surge in Trading Volume: The company experienced a trading volume of 143.5 million shares, which is 688% above its three-month average of 18.2 million shares, indicating heightened investor anxiety regarding its future.
- Increased Legal Pressure: The lawsuit from Novo Nordisk seeks to prevent Hims & Hers from selling compounded versions of its patented drugs, intensifying the legal and regulatory challenges the company faces, which could impact its market strategy.
- Negative Market Reaction: Hims & Hers has seen a cumulative decline of 26.89% over the past five days, suggesting a waning investor confidence in its business transformation, especially after the announcement to withdraw its copycat obesity drug Wegovy.
See More
Hims & Hers Health Shares Plunge 16.07% Amid Legal and Regulatory Challenges
- Significant Stock Drop: Hims & Hers Health shares closed at $19.33 on Monday, down 16.03% from the previous day, reflecting market concerns over the company's legal lawsuit and regulatory pressures.
- Surge in Trading Volume: The trading volume reached 143.5 million shares, approximately 688% above the three-month average of 18.2 million shares, indicating heightened investor uncertainty regarding the company's future.
- Impact of Legal Action: Novo Nordisk's lawsuit seeks to prevent Hims & Hers from selling compounded versions of its patented drugs, exacerbating market worries about the company's business model, especially following the FDA's crackdown on GLP-1 active pharmaceutical ingredients.
- Urgency of Strategic Shift: Hims & Hers announced last year a pivot towards other health conditions and AI health capabilities, and this incident underscores the urgency of this strategic shift in response to an increasingly challenging market environment and regulatory landscape.
See More
Hims & Hers Health Shares Plunge 16.03%
- Stock Price Drop: Hims & Hers Health closed at $19.33 on Monday, down 16.03%, reflecting investor concerns over the company's legal and regulatory challenges impacting its market perception.
- Surge in Trading Volume: The trading volume reached 143.5 million shares, approximately 688% above the three-month average of 18.2 million shares, indicating heightened market activity and investor interest in the stock's volatility.
- Legal Challenges: Novo Nordisk has filed a lawsuit against Hims & Hers, seeking to prevent the sale of compounded copies of its patented drugs, which intensifies market fears regarding Hims & Hers' operational viability.
- Strategic Shift Importance: Hims & Hers announced it would withdraw its copycat version of the obesity drug Wegovy, pivoting towards other health conditions and AI capabilities, making this strategic shift crucial in light of the current legal and regulatory pressures.
See More
