Retail investors are talking about a slim group of topics on Reddit this week including Novo Nordisk A/S NVO, weight-loss drug Ozempic and talk show host Oprah Winfrey.
What Retail Is Saying: Retail investors in subreddit r/StockMarket are pointing to the connection between Novo Nordisk’s stock gains of more than 85% over the past year and the rise in popularity of the weight-loss drugs Ozempic and Wegovy.
"It was just brought to my attention that the Ozempic (Novo Nordisk A/S) stock went completely insane over the past few years being that it's an extremely popular/trendy weight loss drug," posted u/huckleberryhouuund.
Weight-loss drugs, including Ozempic and Wegovy, gained popularity among celebrities and are becoming more widely used by the general public. Winfrey hosted a prime-time television special Monday night titled, "An Oprah Special: Shame, Blame and the Weight Loss Revolution," where she discussed weight loss struggles and the use of related drugs.
Some investors were hoping to see a pop in Novo Nordisk's stock price following the special, but were left disappointed after the stock traded slightly lower on Tuesday.
"Well, Oprah was a bust. 3/28 $140 NVO is not going to pay off (my) mortgage," lamented u/dabent71 in the r/WallStreetBets forum.
Another Redditor pointed to the FDA's recent expanded-use approval of Novo Nordisk's Wegovy.
"Wegovy is the weight loss variant that NVO produces. Last week they announced it reduces heart incidents by 20 percent," said u/trader_dennis.
The FDA recently expanded its approval of Wegovy to cover its use in the treatment of obesity and cardiovascular disease management in the U.S.
More Growth Ahead?
"NVO is not done yet. It's a product that buys you time. A longer healthier life,” said u/stupid_comments. “You think this is all it will grow?”
The Redditor may be correct as Novo Nordisk has more weight-loss drugs in its pipeline. Recently, the company's head of development, Martin Holst Lange, expressed confidence in the drugmaker's ability to launch its experimental weight loss drug, amycretin, within this decade.
Early trial data has shown the experimental drug produces higher weight loss than Wegovy, and Novo Nordisk is set to begin a Phase 2 trial of the drug later in 2024, with results due in early 2026.
NVO Price Action: According to Benzinga Pro, Novo Nordisk shares closed down 1.16% at $131.35 Tuesday. The stock was down another 0.5% at $130.72 Wednesday morning.
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