Weight loss drugs Wegovy and Ozempic reeled in billions
Pharmaceutical concern Novo Nordisk A/S (NYSE:NVO) is up 4.9% at $86.63 at last glance. The company posted strong fourth-quarter results and better-than-expected full-year revenue for 2024, as weight-loss drugs Wegovy and Ozempic reeled in billions, though sales are expected to slow this year amid supply shortages. CEO Lars Fruergaard Jorgensen also spoke to journalists after the report, saying the Danish drugmaker is well-positioned to deal with potential tariffs by the U.S.
On the charts, today's pop has NVO on track to snap a three-day losing streak. The stock still hasn't recovered from its mid-December bear gap, after which it hit a Jan. 17, 52-week low of $78.17 amid pressure at the $89 level. Year-over-year, the shares are down 26.2%.
Options traders are chiming in on the event, with 45,000 calls and 18,000 puts exchanged so far -- three times the overall options volume typically seen at this point. The weekly 2/7 93-strike call is the most popular, with new positions being bought to open there.
Analysts have yet to respond, but the majority are already bullish despite the stock's price action. Of the 15 in coverage, 11 carry a "strong buy," three a "hold," and one a "sell."