Novo Nordisk Stock Sinks To 52-Week Lows: Weight Loss Boom Losing Steam?

Novo Nordisk A/S NVO has been on a tear in the weight loss drug race, but its stock is slimming down for all the wrong reasons.

Shares have plunged 44.14% over the past year, 17.4% year-to-date, and 19.27% in the last month.

The Novo Nordisk stock fell to a fresh 52-week low of $72.15 — a far cry from its peak of $148.15.

NVO Stock Chart: A Bearish Picture

Chart created using Benzinga Pro

The stock is firmly in bearish territory, trading below its eight, 20, and 50-day exponential moving averages. It’s a sign that selling pressure isn't letting up.

The eight-day simple moving average (SMA) of $77.11, 20-day SMA of $81.23 and 50-day SMA of $82.94 all flash bearish signals, while the 200-day SMA of $111.72 highlights just how deep this decline has been.

Adding insult to injury, the MACD (moving average convergence/divergence) reading of a negative 3.04 and RSI (relative strength index) of 32.37 suggest further downside risk.

Read Also: If You Invested $1000 In This Stock 5 Years Ago, You Would Have This Much Today

A New Obesity Drug Bet: Too Little, Too Late?

While Novo Nordisk is busy betting on the future with its latest $2 billion deal to acquire rights to a Chinese obesity drug from United Laboratories International, investors remain unimpressed.

The treatment, UBT251, is designed to challenge Eli Lilly & Co's LLY ‘Triple G’ obesity drug, retatrutide, which has already shown promising weight loss results, reported CNBC.

But with UBT251 still in early-stage trials, Lilly's blockbuster could hit the market first, leaving Novo Nordisk playing catch-up.

Trouble Ahead?

Novo Nordisk's weight loss empire is facing pressure on multiple fronts—technical signals scream bearish, competition is heating up, and Wall Street is questioning whether the company can maintain its dominance.

As investors digest the latest drug deal, Novo Nordisk stock bulls may need more than a new obesity treatment to revive the stock's momentum. For now, the trend remains sharply downward.

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