Novo Nordisk A/S NVO shares rose by nearly 5% in pre-market trading on Monday, as per Benzinga Pro. This follows a significant 17.8% drop on Friday, which was triggered by disappointing results from a Phase III trial of its weight-loss drug, CagriSema.
What Happened: The Danish pharmaceutical company experienced a €90 billion reduction in market value after the REDEFINE 1 study revealed that CagriSema’s weight-loss benefits were comparable to Eli Lilly’s Zepbound, but with poorer tolerability. The trial indicated that patients using CagriSema lost an average of 22.7% of their weight over 68 weeks, while those on a placebo lost 2.3%.
Talking to Markets Watch, analysts at Intron Health, led by Naresh Chouhan, suggested that Friday’s market reaction was excessively severe. They highlighted that ongoing trials of CagriSema and Semaglutide might offer investors positive insights soon. This perspective has contributed to the rebound in Novo Nordisk’s stock price, as investors reassess the potential of the company’s weight-loss treatments.
Why It Matters: The recent fluctuations in Novo Nordisk’s stock have been closely watched by analysts and investors alike. According to a recent analysis, analysts’ ratings for Novo Nordisk have varied from bullish to bearish over the last quarter. The 12-month price targets set by analysts reveal an average target of $145.25, with a high estimate of $160.00 and a low of $105.00. This represents an 8.65% drop in the current average compared to the previous average price target of $159.00.
Read Next:
Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
Image via Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
