Novo Nordisk (NVO) stock is soaring Friday after the Danish pharmaceutical company reported positive early stage results for its once-weekly weight loss drug Amycretin.
The topline results from the Phase 1b/2a clinical trial showed that patients treated with Amycretin achieved a body weight loss of 9.7% in 20 weeks on 1.25 milligrams, 16.2% in 28 weeks on 5 milligrams and 22% in 36 weeks on 20 milligrams of the drug. Meanwhile, patients treated with the placebo experienced weight gains of 1.9%, 2.3% and 2%, respectively.
"We are very encouraged by the subcutaneous Phase 1b/2a results for Amycretin in people living with overweight or obesity," said Martin Lange, executive vice president for Development at Novo Nordisk. "The results seen in the trial support the weight lowering potential of this novel unimolecular GLP-1 and amylin receptor agonist, Amycretin, that we have previously seen with the oral formulation."
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Based on the positive results, Novo Nordisk said it is now planning further clinical development of the drug.
Is Novo Nordisk stock a buy, sell or hold?
Novo Nordisk has underperformed the broad market on the price charts over the past 12 months, down 17% vs the S&P 500's 27% gain. But Wall Street remains bullish on the healthcare stock.
According to S&P Global Market Intelligence, the average analyst target price for NVO stock is $113.44, representing implied upside of more than 30% to current levels. Additionally, the consensus recommendation is a Buy.
Financial services firm Argus Research is one of those firms with a Buy rating on NVO stock, along with a $110 price target.
"The company is working with regulators on new indications for its GLP-1 treatments and is also focused on launching new products," wrote Argus Research analyst Jasper Hellweg in a January 16 note. "On the fundamentals, the shares trade at 22 times our 2025 earnings-per-share estimate, well below the stock's five-year historical average of 31. Given the company's strong track record and growth outlook, we believe that a higher multiple is warranted."
Related Content
-
Nasdaq Rises 2.7% as Musk Tweets TSLA Higher: Stock Market TodayMarkets follow through on Friday's reversal rally with even bigger moves on Monday.
-
4 Black Friday Scams to Watch Out forThe deals are heating up, but so are the scams. Here's how to spot some of the most common Black Friday scams this holiday season.
-
Nasdaq Rises 2.7% as Musk Tweets TSLA Higher: Stock Market Today
Markets follow through on Friday's reversal rally with even bigger moves on Monday.
-
Holidays Are a Rich Time to Talk Money With Young Adults: A Financial Adviser's Guide for ParentsThe most productive family financial conversations start with open-ended questions and a lot of listening. Don't let this opportunity pass you by.
-
How Women of Wealth Are Creating a New Model of Giving Through Family OfficesWomen who are inheriting wealth today are shifting from traditional philanthropy to creating sustainable systems to fund philanthropic gifts into perpetuity.
-
I'm a Financial Planner: This Retirement GPS Helps With Navigating Your Drawdown PhaseReady to retire? Here's how to swap your 'peak earnings' mindset for a 'preserve-plus-grow' approach instead of relying on the old, risky 4% rule.
-
Donating Stock Instead of Cash Is the 2-for-1 Deal You'll Love at Tax TimeGiving appreciated stock or using a donor-advised fund (DAF) this year would be smarter than writing a check to support your favorite causes. Here's why.
-
Traveling With Purpose: What Zambia and Zimbabwe Taught Us About Slowing DownDon't treat retirement trips like they're an exercise in ticking off boxes. Slowing down and letting adventure unfold can create more meaningful memories.
-
Investment Expert: Is Your Retirement Portfolio Too Late to the Profit Party?If you're following the usual retirement investment model, you could be missing out on a potential profit period that companies see in the run-up to their IPOs.
-
Losing Your Job? A Financial Planner's 6 Steps to Survive and ThriveWhether pink slips are just rumors at your company or layoffs have already landed, there are things you can do today to make the best of a tough situation.
