Danish pharmaceutical company Novo Nordisk (NYSE:NVO) expects that its popular weight loss drug, Wegovy, will be approved for sale in China this year. As a result, Novo Nordisk plans to launch Wegovy in the Chinese market soon but with capped volumes. This comes after the firm launched the drug in Japan last month. China will be the company’s second biggest market behind the United States.
Initially, Novo Nordisk will target patients in China who can afford Wegovy out of pocket. Wegovy is a GLP-1 drug originally designed to treat type-2 diabetes that has been shown to suppress appetite and reduce food cravings.
According to a Reuters report, citing an HSBC research note, over 100 GLP-1 drugs are in development in China, with two new drugs from local companies expected to launch next year. Novo’s Wegovy patent in China expires in 2026.
On Thursday, NVO announced that another weight loss drug, Amycretin, which is currently in Phase 1 testing, showed weight loss results of around 13% over just 12 weeks.
Is Novo Nordisk a Buy, Sell, or Hold?
Analysts remain cautiously optimistic about NVO stock with a Moderate Buy consensus rating based on five Buys and one Sell. Over the past year, NVO stock has skyrocketed by more than 90%, and the average NVO price target of $118.86 implies a downside potential of 12.55% at current levels.
