Recent sales of a little-known stock, Madrigal Pharmaceuticals (NASDAQ: MDGL), could bode well for Novo Nordisk A/S (NYSE: NVO). The pharma industry giant has seen explosive sales growth for its GLP-1 agonist drug, semaglutide. Marketed through the names Ozempic and Wegovy, sales of the drugs grew 32% and 76% through the first nine months of 2024, compared to the same 2023 period.
However, shares of Novo Nordisk have fallen considerably since the all-time highs they reached in the middle of 2024. Now, the stock has provided a total return of just 5% on the year, as of the Dec. 17 close. Much of this has been due to further clinical results that showed stronger weight loss efficacy for Zepbound. It is the GLP-1 agonist drug sold by Novo’s top competitor, Eli Lilly (NYSE: LLY). I’ll break down the fall from grace that Novo shares have experienced in the second half of 2024. I’ll then explain other clinical and financial results that could help reignite Novo shares.
