Shares of Danish pharmaceutical giant Novo Nordisk (NVO) traded flat on Friday afternoon after its key U.S.-based rival Eli Lilly (LLY) reached $1 trillion in market capitalization at the U.S. market open.
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Eli Lilly joined an exclusive club that only a few non-technology companies have been able to enter. The American pharma giant — whose shares have jumped over 37% since the start of the year — continues to lead the obesity market with its blockbuster weight-loss drug Zepbound.
The achievement comes at a time when Novo Nordisk is attempting to recalibrate its operations to boost sales and regain market share. As of Friday afternoon, NVO had a market capitalization of $213.67 billion.
Novo Nordisk Aims to Regain Market Share
Last week, shareholders voted to install Lars Rebien Sørensen, a former boss of the company, as the new board chair, ending weeks of boardroom uncertainty.
Sørensen has previously noted that his goal is to support the “transformation plans” of the drugmaker’s chief executive, Mike Doustdar. Doustdar was appointed in July after former leader Lars Fruergaard Jørgensen was ousted over the company’s plunging shares.
Since the start of the year, Novo Nordisk’s shares have plummeted by nearly 44%, as of Friday morning. The Danish drugmaker — which had an earlier lead in the obesity market before being overtaken by Eli Lilly — is battling slower sales growth and weaker profit.
As part of efforts to improve its operations, Novo Nordisk has turned to trimming its workforce, slashing jobs both in the U.S., its biggest market, and back home in Denmark. The company is also reportedly shopping around for other opportunities in the obesity market.
This comes as the Danish drugmaker recently lost the bid to take over obesity-focused startup Metsera (MTSR) — which is valued highly by investors — to pharma heavyweight Pfizer (PFE).
Is NVO a Good Stock to Buy?
On Wall Street, analysts continue to hold a Moderate Buy consensus rating on Novo Nordisk’s shares. This is based on four Buys, two Holds, and one Sell issued by seven analysts over the past three months.
At $57.37, the average NVO price target suggests about 20% upside.
