Why Novo Nordisk Stock Is Slumping Today
Shares of the Danish drugmaker Novo Nordisk (NYSE: NVO) were down by 5.4% on unusually high volume as of 11:50 a.m. ET Thursday morning. The company's shares are moving southward following a better-than-expected 2023 first-quarter earnings report.
So why are Novo's shares dipping after an overall strong Q1 report? The key issue weighing on the drugmaker's shares today is the news that Novo will have to start rationing lower-strength starter doses of the popular weight loss drug Wegovy in the U.S. to meet demand. Despite a second contract manufacturer coming online in April, Novo's management expects this shortage to persist for "some months."
Novo's obesity drug sales surged in the first quarter of 2023, thanks primarily to the rising popularity of Wegovy. In fact, this single drug is responsible for an outsized portion of the company's 41% share price appreciation over the last 12 months.
Source Fool.com
