Novo Nordisk Stock: FDA Ends Supply Shortage, Shares Surge

Novo Nordisk's shares experienced a significant upturn on Tuesday, climbing more than 4% to reach 665.00 Danish kroner on the Copenhagen stock exchange. This positive momentum was primarily driven by the U.S. Food and Drug Administration's (FDA) official declaration ending the supply constraints for semaglutide, the key ingredient in the company's successful medications Ozempic and Wegovy. The improved availability of these drugs is viewed as a crucial catalyst for continued growth. Investment firm TD Cowen maintained its buy recommendation and price target of $105.00 following constructive discussions with company management in New York and Boston, reinforcing market confidence in the pharmaceutical giant's trajectory.

Market Competition Intensifies

While the FDA's announcement has strengthened Novo Nordisk's market position and put pressure on generic manufacturers, recent market data reveals increasing competition in the GLP-1 medication segment. Weekly prescription data shows Novo Nordisk's new prescriptions grew by 1.9% in the period ending February 14, while a key competitor achieved a more substantial 14.7% increase. Despite this competitive landscape, major financial institutions remain optimistic, with UBS maintaining its buy rating and a price target of 750 Danish kroner.