Novo Nordisk Inventory Sinks To 52-Week Lows: Weight Loss Growth Shedding Steam? – Novo Nordisk (NYSE:NVO)

Novo Nordisk A/S NVO has been on a tear within the weight reduction drug race, however its inventory is slimming down for all of the improper causes.

Shares have plunged 44.14% over the previous yr, 17.4% year-to-date, and 19.27% within the final month.

The Novo Nordisk inventory fell to a recent 52-week low of $72.15 — a far cry from its peak of $148.15.

NVO Inventory Chart: A Bearish Image

Chart created utilizing Benzinga Professional

The inventory is firmly in bearish territory, buying and selling beneath its eight, 20, and 50-day exponential shifting averages. It’s an indication that promoting stress is not letting up.

The eight-day easy shifting common (SMA) of $77.11, 20-day SMA of $81.23 and 50-day SMA of $82.94 all flash bearish indicators, whereas the 200-day SMA of $111.72 highlights simply how deep this decline has been.

Including insult to harm, the MACD (shifting common convergence/divergence) studying of a adverse 3.04 and RSI (relative power index) of 32.37 recommend additional draw back danger.

Learn Additionally: If You Invested $1000 In This Inventory 5 Years In the past, You Would Have This A lot Right now

A New Weight problems Drug Wager: Too Little, Too Late?

Whereas Novo Nordisk is busy betting on the long run with its newest $2 billion deal to accumulate rights to a Chinese language weight problems drug from United Laboratories Worldwide, traders stay unimpressed.

The remedy, UBT251, is designed to problem Eli Lilly & Co‘s LLY ‘Triple G’ weight problems drug, retatrutide, which has already proven promising weight reduction outcomes, reported CNBC.

However with UBT251 nonetheless in early-stage trials, Lilly’s blockbuster might hit the market first, leaving Novo Nordisk enjoying catch-up.

Bother Forward?

Novo Nordisk’s weight reduction empire is dealing with stress on a number of fronts—technical indicators scream bearish, competitors is heating up, and Wall Avenue is questioning whether or not the corporate can preserve its dominance.

As traders digest the most recent drug deal, Novo Nordisk inventory bulls may have greater than a brand new weight problems remedy to revive the inventory’s momentum. For now, the development stays sharply downward.

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