Why Novo Nordisk Stock Popped on Friday

Core Insights - The FDA has confirmed the resolution of shortages for Novo Nordisk's semaglutide injection products, Ozempic and Wegovy, which have been on the drug shortage list since March and August 2022 respectively [1][2] - Novo Nordisk is now producing sufficient quantities of GLP-1 drugs to meet market demand, which is expected to enhance its sales and negatively impact competitors like Hims & Hers Health [2][3] Company Impact - Novo Nordisk is likely to see increased sales due to the availability of more products, positioning the company favorably in the market [3] - The FDA's declaration may lead to a challenging business environment for Hims & Hers, as they have been compounding similar drugs during the shortage [3] Financial Outlook - Novo Nordisk's stock is considered potentially undervalued with a price-to-earnings (P/E) ratio of 26.4, alongside a forecasted long-term earnings growth rate of 16.6% and a 1.9% dividend [4] - If sales increase following the FDA's order, the growth rate for Novo Nordisk could accelerate further [4]