3 Reasons to Buy Novo Nordisk Stock
The stock is down, but it isn't out yet.
Overview
Novo Nordisk (NYSE: NVO) has faced significant challenges over the past couple of years. The company lost its lead in the weight-loss market to its biggest rival, Eli Lilly (NYSE: LLY), its financial results have been mediocre at best, and it has faced clinical setbacks for otherwise promising pipeline candidates. Given all that, it's not surprising that Novo Nordisk's shares have declined by more than 60% over the past 24 months. However, investing in Novo Nordisk while the stock is down may be a great idea, given solid reasons to expect a rebound. Here are three arguments in favor of a bull case for Novo Nordisk.
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One major obstacle Novo Nordisk faced concerned its next-gen anti-obesity medicine, CagriSema. Though it looked like a smashing clinical success and posted solid weight-loss efficacy numbers in phase 3 studies, it fell short of the 25% mean weight loss management had hoped for. On top of that, it failed to demonstrate non-inferiority to Eli Lilly's Zepbound in a head-to-head study. CagriSema will almost certainly earn approval, but it won't allow Novo Nordisk to take the lead back from Eli Lilly.
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Originally published at www.fool.com.