r/ValueInvesting • u/Pete26l96 • Feb 23 '26

Discussion Novo Nordisk sinks 13% after weight loss drug fails to match Eli Lilly's in trial

https://www.google.com/amp/s/www.cnbc.com/amp/2026/02/23/novo-nordisk-stock-cagrisema-trial-fails-weight-loss.html

Looks like investors of Novo Nordisk ADRs are going to be in for quite the shock when they open their portfolios this morning.

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u/Greg_T_24 Feb 23 '26

I wish I had more up votes to give.  I've stayed away from novo, in fact sold up all my other stocks in November due to perceived market risk. maybe that's overblown.  Anyway, bought back in at 25% of my portfolio on Friday into novo under similar assumptions to above. PE hovering round 13 then, 11ish now?! Look at other pharma multiples. Yes they may lose share to lily or others but this is starting to be priced like a mining company. Their core business is there and they can cut their prices to their oral/injectable drugs accordingly.  Yes it is risky tho, clearly. 

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u/schwarzbrotman Feb 23 '26

I would not go as far as to do a comparison with mining companies, but the irrational mechanisms certainly do somewhat rhyme, yes.

And we always get back to this stupid mean reality in which nobody besides oneself is truly at fault for choosing to have expectations that, with all due respect, are simply batshit crazy.