Why Novo Nordisk Stock Tumbled by Nearly 3% on Tuesday
High-flying healthcare stock Novo Nordisk (NYSE: NVO) lost a bit of altitude on Tuesday, following its latest news from the laboratory. A clinical trial wasn't quite as successful as hoped, and investors expressed their displeasure by trading out of the Danish company's shares. At the end of the day, the stock had lost nearly 3% of its value, comparing unfavorably to the 1% decline of the benchmark S&P 500 index.
Novo Nordisk is busy developing semaglutide, sold under the brand names Ozempic and Wegovy, for afflictions other than the diabetes approved for the former and obesity for the latter. On Tuesday, the pharmaceutical company reported the headline results from a phase 2 clinical trial on semaglutide's ability to halt the progression of kidney impairment and cardiovascular mortality in patients with type 2 diabetes and chronic kidney disease (CKD).
Although the study met its primary endpoint of "demonstrating a statistically significant and superior reduction in kidney disease progression as well as cardiovascular and kidney death," it did so at a 24% rate for patients administered the drug rather than a placebo.
Source Fool.com
