TLDR
- Novo Nordisk shares rose 5.4% Monday, hitting $55.42 before settling at $55.21 on volume 42% above average.
- The Danish drugmaker started U.S. sales of its daily Wegovy pill with cash prices beginning at $149 monthly.
- The pill format marks the first oral GLP-1 obesity treatment available in America, competing against weekly injections.
- Eli Lilly stock dropped 3.6% after hours while Novo gained ground, signaling market share concerns.
- Wall Street consensus sits at Hold with a $53.33 target, below current trading levels.
Daily Wegovy Pill Lifts Shares 5.4% in Heavy Trading
Novo Nordisk posted solid gains Monday as it kicked off sales of its pill-based Wegovy across American pharmacies. Shares closed at $55.21, up from Friday’s $52.39 finish.
The stock peaked at $55.42 during the session. Volume reached 29.6 million shares, running 42% hotter than typical daily activity of 20.8 million shares.
Monday’s rally followed the official U.S. launch of Wegovy in pill form. The medication represents the first daily oral option for obesity treatment in the GLP-1 drug class, breaking from the injectable format that dominated the market.
Patients paying cash can access the entry dose for $149 each month. Mid-range doses cost up to $299. The 4-mg strength will jump to $199 starting mid-April.
Distribution runs through CVS and Costco locations plus telehealth platforms. Additional supply should reach shelves before week’s end.
The rollout dinged competing stocks. Eli Lilly fell 3.6% in extended trading to $1,041.51. Viking Therapeutics also weakened as traders priced in potential share losses to Novo’s new format and pricing strategy.
Price War Brewing in Weight Loss Space
GLP-1 medications manipulate appetite and blood sugar hormones. The drug category exploded as obesity treatments gained mainstream acceptance and insurance coverage expanded.
The battle is moving into cash-pay territory. Patients buying without insurance are emerging as a critical growth segment for pharmaceutical companies.
Lilly awaits FDA feedback in March for its obesity pill candidate. The company capped its repeat cash pricing at $399 for top doses. Both firms committed to $149 starter prices through a White House arrangement tied to the upcoming TrumpRx platform.
GoodRx CEO Wendy Barnes highlighted the push toward “transparent cash pricing” and “broad pharmacy availability” as Wegovy pill distribution ramps up. Her remarks underscore rising price competition across weight-loss medications.
Wall Street Divided on Upside Potential
Analyst opinions span the spectrum. Rothschild & Co Redburn lifted Novo from neutral to buy last September. Sanford C. Bernstein upgraded from market perform to outperform around the same time.
Goldman Sachs trimmed its target from $60 down to $54 in November but kept a buy rating. Jefferies launched coverage in late October with an underperform call.
The average rating lands at Hold with a $53.33 price target. That trails Monday’s close. Coverage breaks down to one strong buy, six buys, eleven holds, and four sells.
U.K. regulators are examining Novo’s pill application. Approval could arrive by December, opening access to another large market for the oral formulation.
The company posted Q3 earnings of $1.02 per share in November, topping the $0.77 consensus. Revenue of $11.79 billion missed the $11.98 billion estimate. Novo’s U.S. public affairs director departed recently as the product launch unfolded.
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