Novo Nordisk Loses Its Crown! SAP Becomes Europe’s Most Valuable Company
In March, Novo Nordisk’s stock fell 25%, resulting in its largest monthly decrease since July 2002. Investors are becoming increasingly concerned that U.S. competitor Eli Lilly is gaining a competitive advantage over the market leader for obesity medications.
In September 2023, the Danish pharmaceutical business became the most valuable company in Europe by market capitalization due to the introduction of the weight-loss injectable Wegovy. Though French luxury firm LVMH had previously momentarily overtaken it, the company lost its mantle to German software major SAP on Monday.
Eli Lilly Gains as Novo Nordisk Struggles: Is the Obesity Drug Race Over?
Even though Wegovy sales more than doubled in the fourth quarter of last year, analysts and investors who are watching the fast deteriorating market opinion against Novo argue that hasn’t happened. Novo’s stock is down 23% this year and has lost half of its market value since last summer. Lilly’s stock has increased 6% so far this year. The highly anticipated weekly U.S. prescription figures for Zepbound and Wegovy give analysts and investors further reason to be concerned.
Sentiment for the stock has become quite negative, as it is widely accepted now that Novo’s Wegovy is significantly inferior to Lilly’s Zepbound. I don’t see a significant upside from the stock through the end of 2025.
Alexander Jenke, portfolio manager at German investment firm Medical Strategy
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