NVO - Why Novo Nordisk Stock Is Slipping Today
2024-07-02 11:54:16 ET
Shares of Novo Nordisk (NYSE: NVO) were slipping 1.7% lower as of 10:57 a.m. ET on Tuesday, after falling as much as 4.4% earlier in the day. The decline came after USA Today published an opinion piece in which President Joe Biden and independent Senator Bernie Sanders of Vermont called for Novo Nordisk and Eli Lilly to reduce the prices for their diabetes and obesity drugs.
In the USA Today article, Biden and Sanders said they are working together on legislation to expand the number of prescription drugs subject to price negotiation by Medicare to at least 50 per year. They warned, "Prescription drug companies also must stop ripping off the American people." Biden and Sanders specifically called out Novo Nordisk for charging "unconscionably high prices" for blockbuster drugs Ozempic and Wegovy.
There's no immediate impact for Novo Nordisk. The proposed legislation referenced by Biden and Sanders could be an uphill challenge to pass in a divided Congress. The upcoming November elections could further reduce the chances that the bill becomes law. However, big pharma companies are frequent targets on Capitol Hill -- and not just from one political party. Novo Nordisk could be forced to lower its prices for Ozempic and Wegovy down the road.
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Why Novo Nordisk Stock Is Slipping Today