EXCLUSIVE: Novo Nordisk Faces Political Heat Over Weight-Loss Drug Prices Ahead Of Elections, Yet 'The Real Issue Is With The Middlemen'
Portfolio Pulse from Piero Cingari
Novo Nordisk is facing political pressure over high U.S. prices for its weight-loss drugs, Ozempic and Wegovy, as the U.S. presidential election approaches. The company's CEO testified before Congress, attributing pricing issues to pharmacy benefit managers (PBMs). Despite potential price cuts, demand for these drugs remains strong, and Novo Nordisk's U.S. revenues are expected to remain stable. The political focus on drug pricing is bipartisan, and increased M&A activity in the pharmaceutical sector is anticipated post-election.
September 25, 2024 | 1:35 pm
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NEUTRAL IMPACT
Novo Nordisk is under political scrutiny for high U.S. prices of its weight-loss drugs. Despite this, demand remains strong, and revenues are expected to stay stable. The focus on PBMs as middlemen may shift some pressure away from the company.
The political pressure on Novo Nordisk regarding drug prices is significant, but the demand for its products remains high. The focus on PBMs as the main issue may reduce direct negative impact on Novo Nordisk. Therefore, the short-term impact on stock price is neutral.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
Tema GLP-1, Obesity & Cardiometabolic ETF (HRTS) may see interest due to political focus on drug pricing and potential M&A activity in the pharmaceutical sector post-election.
The political focus on drug pricing and anticipated M&A activity in the pharmaceutical sector could increase interest in the HRTS ETF, which focuses on obesity and cardiometabolic treatments.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 60