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Novo Nordisk shares dropped after slashing full-year gross sales steering, primarily on account of weakening gross sales of its blockbuster GLP-1 medication, Ozempic and Wegovy.
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Competitors from “compounders” advertising tailor-made variations of GLP-1 therapies is placing stress on drug gross sales.
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Regardless of short-term challenges, Novo inventory trades at one in all its lowest P/E ratios within the final 30 years.
Shares of Novo Nordisk (NYSE: NVO) are falling this week, down 33% as of three:27 p.m. ET on Friday. The drop comes because the S&P 500 misplaced 2.4%, and the Nasdaq-100 misplaced 2.2%. The Danish pharmaceutical big’s inventory was hit after it launched disappointing earnings displaying that gross sales of its blockbuster GLP-1 medication stay weaker than hoped.
Novo Nordisk was compelled to chop steering for its top-line gross sales, pushed primarily by lagging gross sales of its GLP-1 medication, Ozempic and Wegovy. The corporate says it now expects full-year gross sales progress of 8% to 14%, down considerably from its earlier vary of 13% to 21%. Its steering for working revenue was lower as properly, from between 16% and 24% to between 10% and 16%.
Wegovy and Ozempic have been absolute blockbusters for the corporate, propelling Novo to probably the most useful firm in Europe earlier than competitors from “compounders” — firms that market their very own tailored variations utilizing its energetic substances — impacted gross sales.
I feel Novo does have important points it should overcome, however I feel these fears are overblown. For long-term buyers, this looks as if a good time to purchase in. The corporate’s inventory is buying and selling at one in all its lowest price-to-earnings ratios (P/E) in practically 30 years and the bottom in at the least 5 years. This looks as if a chance to me.
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