We recently published 10 Stocks on Jim Cramer’s Radar. One of the stocks on Jim Cramer’s radar is Novo Nordisk A/S (NYSE:NVO).
Danish pharmaceutical company Novo Nordisk A/S (NYSE: NVO) scored a major victory earlier this month after winning approval from the Food and Drug Administration (FDA) for its diet pill. This approval made the Wegovy pill the first of its kind and led the company’s shares to close up 7.30%. The approval marked a key victory for Novo Nordisk A/S (NYSE: NVO), as the company reportedly struggled to compete against Eli Lilly in the weight-loss drug market. Following the approval of the Wegovy pill, the pharmaceutical company acted quickly, as a report from Chinese media outlet Yicai suggested that Novo Nordisk A/S (NYSE:NVO) had cut the prices of its highest-strength Wegovy drugs in half in some Chinese provinces. Following approval, BMO Capital reiterated the Market Perform rating and a $46 stock price target for the company. The financial company pointed out that Novo Nordisk A/S (NYSE: NVO) could enjoy a first-mover advantage in the oral weight loss drugs market and added that it could face competitive challenges in the future. Cramer shared his own take on the issue, commenting that Novo Nordisk A/S (NYSE:NVO) may encounter resistance from doctors when it comes to taking market share away from Eli Lilly:
“Now, remember that in the country, the pill is much preferred over the injection. If you take Wegovy, then people will switch, will quickly migrate to the Wegovy pill… let’s say you’re taking Mounjaro right now, Eli Lilly, they’re hesitant to say look, you should go take Wegovy. Because what they’ll say is look, you tolerate Mounjaro, and we just care about tolerance. And that’s the way it goes. And I think people who think, wow, there are people who are going to be really excited about switching to the pill. Their doctors are going to say no, there might be different reactions and apparently the doses are so high that you might have to make different diet changes. We don’t know enough about the side effects, we do.
