Is Novo Nordisk's Wegovy-Fueled Rebound Evaporating?
It's yet another setback for the drugmaker.
Overview
Novo Nordisk (NYSE: NVO) posted strong first-quarter results and performed fairly well in the month that followed its first-quarter update. However, the company's most recent financial update, for the second quarter, erased much of those gains. In both cases, the market's reaction was largely driven by the performance of the Wegovy pill, the first oral GLP-1 approved for weight loss, which Novo Nordisk launched in the U.S. in January. The Wegovy pill beat expectations in the first quarter but came up short in the second. What does this mean for the company's prospects?
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Over the past few years, Novo Nordisk has lost significant market share to its biggest rival, Eli Lilly (NYSE: LLY). However, the Denmark-based pharmaceutical leader has dominated its main competitor in the oral weight-loss market, thanks to the Wegovy pill. And that's even though Eli Lilly's Foundayo has no food or water restrictions and can be taken at any time of the day -- whereas the Wegovy pill must be taken first thing in the morning on an empty stomach.
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Originally published at www.fool.com.