Novo Nordisk Just Hit 3 Snags in a Row. Is Its Stock Still a Buy?
Surprisingly, the last couple of months have been a touch harder than anticipated for Novo Nordisk (NYSE: NVO). While it's still raking in cash from sales of its medications for type 2 diabetes and weight loss, it also hit a trio of bumps in the road. Is its stock still a buy, or is its momentum finally starting to peter out?
The company's earnings update for the first half of 2024 and a few of its recent filings mention three recent setbacks. These are related to Novo Nordisk's research and development (R&D) activities and to its regulatory submissions.
First, it canceled a program in phase 1 clinical trials that sought to treat metabolic-associated steatohepatitis (MASH, formerly known as NASH). The candidate was formulated for administration once per month, and was designed to use two different mechanisms of action to deliver more therapeutic effects than would be possible with only one. As the trial was halted rather than finished, it's probable that investigators didn't see a tolerable safety profile, nor any preliminary efficacy data to write home about.
Source Fool.com
