Novo Nordisk Stock, A Top 1% Stock, Skids On Light Obesity Sales

Novo Nordisk (NVO) stock slumped Thursday after the pharma giant’s weight loss blockbuster drug, Wegovy, missed sales expectations despite rocketing demand.

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During the first quarter, Wegovy generated about $676.8 million in revenue, according to FactSet. Sales surged 240% but missed forecasts for $755.9 million. Saxenda, another obesity treatment, brought in about $486.4 million, soaring 72%, and above calls for $377.2 million.

Novo is still contending with a shortage of semaglutide, the active ingredient behind Wegovy and Ozempic. The latter is a diabetes treatment that has recently gained a cult following for its weight-loss capabilities. Ozempic sales eked out a beat in the first quarter, growing 74% to about $2.91 billion. Analysts expected $2.89 billion in Ozempic sales.

In morning trading on the stock market today, Novo Nordisk stock fell 4.2% near 160.70.

Novo Nordisk Stock: Obesity Drug Enthusiasm Reigns

Enthusiasm for its diabetes and obesity treatments has sent Novo Nordisk stock skyward in 2023. In this segment, Novo is facing off with Eli Lilly (LLY), Amgen (AMGN) and Viking Therapeutics (VKTX).

Today, Novo shares have a best-possible Composite Rating of 99. This puts them in the top 1% of all stocks when it comes to fundamental and technical measures. Shares also have a Relative Strength Rating of 97, according to IBD Digital, putting their 12-month performance in the leading 3% of all stocks.

But the Wegovy results Thursday sent Novo Nordisk stock careening lower. Across all its diabetes and obesity treatments, Novo Nordisk says sales popped 33% to about $7.22 billion. Excluding the impact of exchange rates, sales grew 31%.

Overall, Novo Nordisk beat revenue expectations at roughly $7.92 billion, up 33%. Adjusted earnings grew 48% to about $1.30 per share. On average, analysts expected $7.66 billion in sales and earnings of $1.24 per share.

The company expects full-year sales to grow 24%-30% in constant currency, and for operating profit to increase 28%-34%. Novo Nordisk stock analysts were forecasting 23% sales growth to $31.84 billion. They also called for adjusted profit to surge 40% to $5.01 a share.

Despite the dive early Thursday, Novo Nordisk stock remains well above its 50-day and 200-day moving averages, according to MarketSmith.com.

Follow Allison Gatlin on Twitter at @IBD_AGatlin.

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