Why Novo Nordisk Stock Is Marching Higher Today
Shares of the Danish drugmaker Novo Nordisk (NYSE: NVO) were up by 3.6% on heavy volume Monday. The pharmaceutical company's shares are rebounding following a modest dip last week in the wake of its 2023 first-quarter earnings report.
Specifically, Novo's stock slumped late last week on the news that the company would have to start rationing the lower-strength starter doses of the popular weight-loss drug Wegovy in the U.S. as a result of sky-high demand. During the first three months of the year, Wegovy reportedly helped fuel a 131% increase in year-over-year sales of Novo's obesity care unit, underscoring its importance as a key growth driver for the pharma giant.
Normally, the market would handsomely reward a pharma company for developing a product that's so popular that supply can't keep up with demand. There is an important wrinkle to this story, however.
Source Fool.com
