Why Is Everyone Talking About Novo Nordisk?
The drugmaker continues to face headwinds.
Overview
Novo Nordisk (NYSE: NVO) is well-known for its strong position in the GLP-1 market. The company's brands in this area, including Wegovy and Ozempic, have practically become household names. However, that hasn't enabled the drugmaker to perform well over the past couple of years. Novo Nordisk has significantly lagged the broader equity market during this period. The company may not have bottomed out yet, either. Recent developments have sent the stock down 13% over the past week, as of writing, and perhaps more is to come. What's going on with Novo Nordisk?
Despite being a leader in the GLP-1 market, Novo Nordisk has lost some ground to its biggest competitor, Eli Lilly (NYSE: LLY). The Denmark-based pharmaceutical leader has been trying to get back on track by developing newer products. But it recently hit more stormy seas following a clinical setback. Novo Nordisk's ziltivekimab, an investigational medicine being developed to reduce the risk of major adverse cardiovascular events in people with atherosclerotic cardiovascular disease, chronic kidney disease, and inflammation, failed to hit its primary endpoint in a phase 3 clinical trial.
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Originally published at www.fool.com.