Why Novo Nordisk Stock Tumbled on Tuesday
Novo Nordisk (NYSE: NVO) has risen to fame and prominence with its twin drugs Wegovy and Ozempic, with the former being particularly hot since it's approved for weight loss. However, on Tuesday a powerful rival to the company reported positive top-line results for a drug that could provide very stiff competition to the Danish pharmaceutical's top medication.
Investors didn't react happily to this news, ultimately trading out of Novo Nordisk to leave the healthcare stock with a nearly 2% loss in price. This was on a day when the bulls were having their fun, as the S&P 500 index crept 0.4% higher.
That competitor was no less a company than the current titan of the U.S. pharmaceutical industry, Eli Lilly. That morning, it published the top-line results of a late-phase clinical trial of a GLP-1 weight-loss treatment it's been developing, and the results were discouraging for present and potential rivals.
Source Fool.com
