Novo Nordisk Stock Is Falling Friday: What's Driving The Action?

Shares of Danish pharmaceutical giant Novo Nordisk A/S (NYSE:NVO) are trading lower Friday morning, continuing an after-hours slide that began Thursday. The decline was sparked by comments from President Donald Trump, who signaled his intent to make popular weight-loss drugs “a lot lower” in price.

• NVO stock is showing notable weakness. See what the experts say here.

What To Know: Novo Nordisk is the manufacturer of Ozempic and Wegovy, two blockbuster GLP-1 medications that have become primary revenue drivers for the company. The drugs, which contain the active ingredient semaglutide, have seen immense demand for treating type 2 diabetes and obesity.

The potential for U.S. government pressure to lower drug prices creates significant risk for Novo Nordisk’s bottom line. Investors are concerned that reduced prices would directly compress the company’s substantial profit margins on these highly successful products.

The market’s reaction Friday reflects fears that political intervention could curtail the earnings growth that has propelled NVO’s stock. The news also negatively impacted shares of competitor Eli Lilly.

Benzinga Edge Rankings: Underscoring the negative price action, the stock’s Benzinga Edge rankings show very weak momentum with a score of just 9.29.

NVO Price Action: Novo Nordisk shares were down 3.88% at $53.91 at the time of publication on Friday. The stock is near its 52-week low of $45.05, according to Benzinga Pro data.

Read Also: UK Finance Minister Seeks More Pharma Investment In Exchange For Higher Drug Prices: Report

How To Buy NVO Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in Novo Nordisk’s case, it is in the Health Care sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

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