Negative Outlook on Novo Nordisk Amid Forecast Cuts

3 months ago

Louise Moon

"Indeed. Yeah, shares are kind of fluctuating. Uh this morning, you might say indeed yo-yoing this morning. They trimmed their forecast as you say. That's for the fourth time this year and that came alongside quite disappointing third quarter earnings. So you take a look at profit that fell short of estimates. Sales were also lower. The growth was the slowest since the first quarter of 2021. Um, and this is all on the back of what's been an ongoing lagging sales in their obesity drugs, their blockbuster drugs. They're also grappling with increased competition, slower market expansion, and the new CEO is really trying to be aggressive to combat all of that. So, you know, he's laying off a chunk of staff and he's trying to he was trying he is trying still uh to win a obesity startup that's kind of competing with FISA to do that. So uh cha a lot of challenges that Novo is facing. Their stock has already lost about half of its value so far this year and a lot of that is as I say on those competition concerns. Analysts are noting though that some of the commentary around pricing of drugs in the US was better than expected and that is kind of explaining that fluctuation in share prices despite you know that trimming of forecast and those disappointing earnings. There is that bit of light of positivity. So, so shares seesaworing, yo-yoing on the back of that."

The speaker outlines several challenges Novo Nordisk is facing, including forecast cuts, disappointing Q3 earnings, lagging drug sales, increased competition, and management restructuring, all contributing to a significant drop in stock value.

Related Stocks