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."
Sign up for Kiplinger’s Free E-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
-
How to Invest as the AI Industry Grows UpHere’s where to find the winners as artificial intelligence transitions from an emerging technology to an adolescent one.
-
I’m 62 and worried about Social Security’s future. Should I take it early?A Social Security shortfall may be coming soon. We ask financial experts for guidance.
-
How to Invest as the AI Industry Grows Up
Here’s where to find the winners as artificial intelligence transitions from an emerging technology to an adolescent one.
-
How Much Income Can You Get From an Annuity? An Annuities Expert Gets SpecificHere's a detailed look at income annuities and the factors that determine your payout now and in the future.
-
Your Paycheck Stops in Retirement, But Your Life Doesn't: An Expert Guide to Planning for a Confident FutureSocial Security will replace only about 40% of your salary, on average. A solid financial plan will help you plug the gap so you can rest easy in retirement.
-
Are You Jeopardizing Your Future to Help Your Adult Kids? An Expert Guide for How to Not Do ThatIf your adult child needs financial help, of course you want to provide it, but crafting a plan that also protects your financial and emotional well-being is vital.
-
Stock Market Today: Stocks Slip Ahead of Big Earnings, Inflation WeekPerhaps uncertainty about tariffs, inflation, interest rates and economic growth can only be answered with earnings.
-
I'm a Financial Planner: Here Are Some Long-Term Care Insurance Tips for Every AgeStrategies include adding riders to life insurance for younger individuals and considering hybrid or traditional long-term care policies for those in their mid-50s and 60s.
-
Engineering Reliable Retirement Income in 2025: An Expert GuideFor dependable income, consider using a bucket strategy and annuities in tandem to promote structure, flexibility and peace of mind.
-
Crazy Markets Shouldn't Derail Your Retirement if You Follow This Financial Pro's PlanBeing nervous about retiring in a volatile market is a red flag that you're relying too heavily on your investment portfolio, rather than a comprehensive plan.
