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July 30- Novo Nordisk (NYSE:NVO) continued to slide 7% on Wednesday after the Danish drugmaker cut its full?year outlook. Slower growth in its obesity franchise, led by semaglutide, weighed down the company’s performance.
The company now sees sales rising 8%14% and operating profit up 10%16% on a currency?adjusted basis, down from prior forecasts of 13%21% and 16%24%. Management cited weaker U.S. demand for Wegovy and Ozempic amid rising competition from compounded GLP?1 therapies.
Investors dumped shares fast. The sell-off erased an estimated $70 billion in market value, slashing Novo Nordisk’s valuation to around $287 billion, down from roughly $357 billion a day earlier.
Technical indicators show heightened selling pressure, with the 14?day Relative Strength Index at 26.4below the 30?level that often signals an oversold stock. NVO remains 64.9% below its record intraday high of $148.15 reached in June 2024.
Some analysts maintain a positive stance despite the outlook cut. They point to Novo Nordisk’s dominant GLP?1 pipeline and expect oral Wegovy approvals to support long?term growth, though they warn that near?term volatility may persist.
This article first appeared on GuruFocus.
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