No. of Recommendations: 2
No position. No interest. But there isn't much falling these days and maybe someone here has thoughts on it.
No. of Recommendations: 8
I had the same thought. $51.07 as I type.
The first bit of their announcement that triggered the sell-off doesn't sounds like the end of the world:
"In the first six months of 2025, Novo Nordisk’s sales increased by 18% and operating profit increased by 29%, both at constant exchange rates..."
It seems like those folks holding them as a high growth pick are no longer interested.
For a crude sense of scale:
Earnings per share last year were $3.14, so current price is 16.3 times that.
Operating earnings for 2025 are now guided to be up 10-16%, so if net earnings are up the same, that would make today's price around 14.0 to 14.8 times that number.
If earnings per share actually fall, that is no great deal. But if they managed to hold at that level or higher long term, after inflation, a fella wouldn't do too badly.
Jim
Also no position
No. of Recommendations: 5
Novo’s competitive position on the GLP - 1 drugs is eroding. Lilly’s versions are outperforming Novo’s.
Also patent on GLP-1 drugs are expiring and Indian generic makers are launching generic versions in 87 countries next year.
Insurance coverage for obesity drugs has declined in US and generic compounders are grabbing market share. With insurance coverage Ozempic costs $25/month, without $1,000.
Another future worry is the tariff rate on pharmaceuticals imported from EU, which the recent deal did not fully address.
Earnings from obesity drugs may decline sharply in the next few years.
Finally markets did not like the new CEO, who is along term company insider with no US experience. Market was hoping for an outsider CEO with US experience to turn things around.
Stock may be fairly priced if earnings remain flat but not so if they actually decline.
