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Decline in the price of Novo Nordisk shares over the past year, despite surging sales of its Wegovy weight-loss drug and Ozempic, which is used by diabetes patients. It declined 7% Monday but recovered slightly and closed Tuesday at $59.90, up almost 2.7%.
The Danish company reported a 25% increase in sales last year, and a 22% gain in earnings per share.
But Novo Nordisk also faces stiff competition from Eli Lilly, which sells Mounjaro for type 2 diabetes and Zepbound for weight loss. Tests have suggested increased efficacy for the Indianapolis-based company’s products. Eli Lilly shares now trade for more than 35 times their earnings, compared with a P-E ratio of 14 for Novo Nordisk.
Both companies are making big bets on North Carolina. Novo Nordisk is investing $4.1 billion in its Johnston County plant with completion expected by 2029. Eli Lilly is spending $2 billion at a Concord plant with production expected to start later this year.
Author: staff report
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