Why Novo Nordisk Stock Imploded This Week
Shares of Novo Nordisk (NYSE: NVO) are falling this week, down 33% as of 3:27 p.m. ET on Friday. The drop comes as the S 500 lost 2.4%, and the Nasdaq-100 lost 2.2%. The Danish pharmaceutical giant's stock was hit after it released disappointing earnings showing that sales of its blockbuster GLP-1 drugs remain weaker than hoped.
Novo Nordisk was forced to cut guidance for its top-line sales, driven primarily by lagging sales of its GLP-1 drugs, Ozempic and Wegovy. The company says it now expects full-year sales growth of 8% to 14%, down significantly from its earlier range of 13% to 21%. Its guidance for operating profit was cut as well, from between 16% and 24% to between 10% and 16%.
Wegovy and Ozempic have been absolute blockbusters for the company, propelling Novo to the most valuable company in Europe before competition from "compounders" -- companies that market their own tailor-made versions using its active ingredients -- impacted sales.
Source Fool.com
