NVO Stock: Obesity Sales Nearly Double, But That Wasn’t Enough For Investors

Danish drugmaker Novo Nordisk (NVO) missed second-quarter expectations Wednesday but raised its full-year outlook. NVO stock tumbled.




X



Sales climbed 25% to 41.27 million Danish Kroner — or about $5.62 billion. Adjusted profit came in at 5.86 Danish Kroner per share, up more than 11%. That translates to about 80 cents of adjusted earnings per share in US dollars. But both measures came into light, according to FactSet.

The company posted strong growth for its diabetes and obesity care division, up 28%. Novo Nordisk said its diabetes drugs in the GLP-1 class — Rybelsus and Ozempic — drove the lion’s share of the growth. Together, sales of those drugs increased 57%. Sales of obesity treatments surged 99%.

But on today’s stock market, NVO stock topped 12.7% to close at 99.91.

NVO Stock: Raised 2022 Guidance

Novo Nordisk has made a name for itself in diabetes. It’s now expanding more deeply in obesity and overweight treatment, where Eli Lilly (LLY) soon hopes to make inroads.

By the end of the year, Novo Nordisk says it plans to make all dosages of its newest weight-loss drug, Wegovy, available in the US

For the year, Novo Nordisk called for sales to grow 12%-16% in constant currency and for profit to increase 11%-15%. That’s an increase from the company’s previous guidance for 10%-14% and 9%-13%, respectively.

But NVO stock plunged below its 50-day and 200-day moving averages, MarketSmith.com shows. Shares are consolidating with a buy point at 122.26.

NVO stock also has a strong Composite Rating of 92, which puts shares in the leading 8% of all stocks in terms of fundamental and technical measures.

Furthermore, shares have a bullish Relative Strength Rating of 90. This means NVO stocks trade in the top 10% of all stocks in terms of 12-month performance, according to IBD Digital.

Follow Allison Gatlin on Twitter at @IBD_AGatlin.

YOU MAY ALSO LIKE:

Moderna Stock Surges After Covid Vaccine Sales Obliterate Expectations

Alnylam Pharmaceuticals Is On Track To Hit A Record High — Here’s Why

Watch IBD’s Investing Strategies Show For Actionable Market Insights

Join IBD Live For Stock Ideas Each Morning Before The Open

Find The Best Long-Term Investments With IBD Long-Term Leaders

Leave a Comment

Your email address will not be published.