Data from Vanda Research indicated a notable increase in retail investor interest in Novo Nordisk (NVO, Financial) as funds flowing into the company's stock surged 32 times last week. This interest was sparked by the Danish pharmaceutical giant's underwhelming weight-loss drug data, which presented a rare buying opportunity as the company's stock plummeted.
On that day, net inflows reached $15.6 million, up from $490,000 the previous day after trials showed that their experimental drug, CagriSema, achieved only a 22.7% weight reduction compared to the anticipated 25%. The company's stock fell 27%, wiping over $100 billion from its market value, with the U.S.-listed shares dropping 21% to $81.50.
The weight-loss drug sector is projected to generate over $150 billion in revenue over the next decade, with Novo Nordisk competing closely with Eli Lilly (LLY). Retail investors remain bullish, taking advantage of price dips, although their activity lags behind tech giants like Nvidia (NVDA) and Tesla (TSLA).
