NVO Shares Rise On Strong Kickstart For Wegovy Pill In US: Retail Eyes Up To $110 As ‘Fair Value’

• The U.S. Food and Drug Administration approved the Wegovy pill to reduce body weight and maintain weight reduction for a longer term in December.
• Novo’s rival Lilly, meanwhile, is looking forward to getting FDA approval for its oral obesity drug Orforglipron by April.
• Despite its strong existent portfolio, Novo said earlier this week it is on the lookout for merger and acquisition deals to boost its drug portfolio.

Danish drugmaker Novo Nordisk’s (NVO) Wegovy pill reportedly hit 3,071 U.S. prescriptions in the first four days after its launch, marking a strong start for the oral weight-loss pill.  

Reuters reported on Friday, citing IQVIA data shared by analysts, that the numbers reflect only retail prescriptions for oral Wegovy and not those filled through the company’s online pharmacy since its launch on January 5.

NVO shares traded 7% higher at the time of writing.

Wegovy Pill Approval

The U.S. Food and Drug Administration (FDA) approved the Wegovy pill to reduce body weight and maintain weight reduction for a longer term in December.

The Wegovy pill is now the first FDA-approved oral GLP-1 class drug for weight management and marks a crucial step forward for the company in its ongoing efforts to protect market share from rival Eli Lilly, whose injectable GLP-1 drug Zepbound is fast eroding injectable Wegovy’s market dominance. The company launched the Wegovy pill earlier this month, starting at $149 a month.

Novo’s rival Lilly, meanwhile, is looking forward to getting FDA approval for its oral obesity drug Orforglipron by April. Novo now has a few months head start against Lilly to cement its customer base.

Portfolio Expansion

Despite the strength of its existing portfolio, Novo said earlier this week it is on the lookout for merger and acquisition deals to boost its drug range. Novo CEO Mike Doustdar said during the annual JP Morgan Healthcare conference that the company will continue searching for molecules, assets, and companies that are complementary to its portfolio.

Doustdar said that the company can afford any amount for an asset, provided it is worth it. Talking about Novo Nordisk’s recent $10 billion bid to acquire smaller obesity drug maker Metsera, the CEO said, “We stopped at $10 billion in Metsera because to us, it was not worth a penny more.” Novo lost out to Pfizer in the bidding war.

However, in December, Novo completed its acquisition of Akero Therapeutics for up to $5.2 billion in a bid to gain access to its experimental drug Efruxifermin, being developed for the treatment of compensated cirrhosis due to metabolic dysfunction-associated steatohepatitis (MASH).

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around NVO stock stayed within the ‘bullish’ territory, while message volume rose from ‘normal’ to ‘high’ levels.  

A Stocktwits user said that the stock is now “way below what it should be.” They added that $100-$110 is fair value for the stock based on its current products.

Another opined that Novo is the “clear winner” in obesity drugs.

NVO shares have fallen 26% over the past 12 months.

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