Why Novo Nordisk Shares Are Trading Higher Tuesday
Portfolio Pulse from Dylan Berman
Novo Nordisk (NYSE:NVO) shares are trading higher following China's approval of its weight loss drug, Wegovy. Despite a patent expiration in China in less than two years, the company has patents in the U.S. and Europe lasting until 2032 and 2031, respectively. Novo also announced a $4.1 billion investment in a U.S. facility for Wegovy and Ozempic.
June 25, 2024 | 3:58 pm
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Novo Nordisk shares are trading higher due to China's approval of its weight loss drug, Wegovy. The company faces a patent expiration in China in less than two years but holds longer patents in the U.S. and Europe. Additionally, Novo announced a $4.1 billion investment in a U.S. facility for Wegovy and Ozempic.
The approval of Wegovy in China, a market with a high number of overweight individuals, is a significant growth opportunity for Novo Nordisk. Although the patent expiration in China is a concern, the longer-term patents in the U.S. and Europe provide a buffer. The $4.1 billion investment in a U.S. facility further underscores the company's commitment to expanding its production capabilities, positively impacting investor sentiment.
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