NVO Inventory Eyes 34% Upside After $4.7B Akero Therapeutics Purchase

Novo Nordisk A/S Right this moment

NVO

Novo Nordisk A/S

$56.72 +0.06 (+0.10%)

As of 03:59 PM Japanese

This can be a truthful market worth value offered by Polygon.io. Study extra.

52-Week Vary

$45.05

▼

$119.07

Dividend Yield

1.45%

P/E Ratio

15.58

Worth Goal

$76.00

Novo Nordisk A/S NYSE: NVO lately introduced plans to accumulate Akero Therapeutics. The deal, which is valued at around $4.7 billion, is scheduled to shut early in 2026. After initially shifting greater after the information, NVO inventory has drifted decrease, probably as a result of renewed uncertainty surrounding tariff coverage affecting the whole market.

That is the newest transfer by Novo Nordisk to compete with Eli Lilly and Co. NYSE: LLY within the multi-faceted weight reduction and weight problems market. Earlier this yr, Novo introduced a partnership with Septerna Inc. NASDAQ: SEPN to develop novel drug remedies for weight problems and kind 2 diabetes.

EFX May Place Novo Forward of Eli Lilly in NASH Remedies

Each offers spotlight the corporate’s long-term technique to maneuver past managing weight problems to treating the underlying causes. Akero’s efruxifermin (EFX) drug candidate is in Section 3 trials. If authorized, IT has the potential to be a best-in-class remedy for metabolic dysfunction-associated steatohepatitis (MASH). The drug is at the moment being examined on sufferers with average to superior liver fibrosis (F2-F3) and sufferers with cirrhosis (F4).

Roughly 40% of MASH sufferers even have Kind 2 diabetes. Over 80% of MASH sufferers are chubby or residing with weight problems. Treating the underlying causes of weight problems (i.e., metabolic Health) has been a spotlight of each Eli Lilly and Novo Nordisk. The acquisition of Akero will assist the corporate seize adjoining ailments tied to weight problems,

Analysts estimate that the MASH market may very well be valued between $20 billion and $40 billion as soon as efficient therapies are out there. EFX has made IT by way of Section 2b trials with robust security and efficacy alerts.

That is no small accomplishment as a result of Novo is succeeding the place different corporations have failed. Traders could recall that in August, Novo’s Wegovy was the primary GLP-1 drug authorized for the remedy of MASH. This new deal can put Novo Nordisk ready to leapfrog Lilly within the NASH pipeline house, since Lilly’s candidate is in an earlier stage of growth.

Oral Wegovy Launch Set to Broaden Entry in 2026

Transferring past the weight problems market could also be a key to the corporate’s long-term success. Nonetheless, within the brief time period, the marketplace for GLP-1 medication continues to increase, which is predicted to achieve $150 billion in 2034. That’s 10x progress from the $15 billion market IT was in 2024.

Earlier this yr, Novo Nordisk was the primary firm to have an oral GLP-1 drug authorized by the U.S. Meals & Drug Administration for weight problems. The corporate expects to carry out a restricted rollout of the drug in the USA in early 2026. The broader launch will come later within the yr as manufacturing capability comes on-line.

IT’s too early to inform if oral GLP-1 medication will likely be as efficient for weight reduction because the injectable medication. Nonetheless, sufferers have said a desire for the oral model, which is probably going cheaper to supply, making these medication extra accessible to a broader market.

Analysts See Lengthy-Time period Upside Regardless of 2025 Pullback

Analysts have been combined on NVO inventory lately, suggesting traders could have to attend on the corporate’s early November earnings report back to make clear the short-term path.

Nonetheless, the consensus value goal of $76 nonetheless suggests a 34% upside from the inventory’s present value as of Oct. 14. NVO inventory is buying and selling at round 15x earnings, however analysts are forecasting earnings progress of round 21%, suggesting the inventory is undervalued within the broader market and amongst medical shares. 

IT‘s additionally essential to notice that, though establishments don’t closely personal NVO inventory, institutional shopping for has outpaced promoting within the final two quarters. NVO inventory remains to be about 14% above its 52-week low and is buying and selling proper at its 50-day easy shifting common (SMA), which has served as each a degree of help and resistance prior to now yr.

That mentioned, NVO inventory hasn’t recovered from the steep sell-off in July. A few of that was as a result of firm’s announcement that the oral model of Wegovy can be delayed into 2026, however a lot of IT was as a result of valuation considerations after the inventory hit a report excessive in June.

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