Healthcare major Novo Nordisk (NYSE:NVO) has come under fire following a study indicating that NVO’s popular diabetes drug Ozempic can be manufactured for less than $5 per month.
According to the study published in JAMA Network Open, the foundational cost for a weekly dose of Ozempic (also known as semaglutide) ranges from $0.89 to $ 4.73 for a 0.77 mg dosage. By contrast, the injection’s lowest market price can fluctuate between $38 to $353.
In response, Senator Bernie Sanders blasted Novo Nordisk, calling on the company to lower list pricing for Ozempic and Wegovy to similar levels to Canada. The senator noted that Americans are paying around $1,000 for Ozempic, while the same product is available for $59 in Germany and for $155 in Canada.
Is Novo Nordisk a Buy, Sell, or a Hold?
The soaring demand for its popular weight loss and diabetes drugs has propelled NVO’s share price nearly 65% higher over the past year. Overall, the Street has a Moderate Buy consensus rating on the Danish pharmaceutical major alongside an average NVO price target of $122.18. This implies a potential downside of around 4.7% in the stock.
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