Roche vs. Novo Nordisk: Who will suffer the Weight Loss?
Roche (ticker: ROG.SW) is losing ground on the stock due to the side effects of its new weight loss pill, CT-996, which is still in the testing phase. After a rally that boosted its shares 40% between May and September, the Swiss drugmaker has seen an 11% drop in its shares in September alone, including a decline of up to 6.75% on the U.S. stock market.
The weight-loss drug market, driven by the success of Novo Nordisk's Ozempic (ticker: NVO), is projected to reach $130 billion annually by the end of the decade. However, Roche faces challenges following trials of CT-996, where five out of six patients suffered nausea and one in six had “chronic reflux,” which has affected its competitiveness. Despite these adverse results, Manu Chakravarthy, director of product development for Roche's cardiovascular, renal and metabolism division, believes the trials are still encouraging and plans to continue with larger clinical studies to determine tolerability and improve the drug's profile.
Comparing the two companies' charts, Roche showed significant progress versus Novo Nordisk through July 31. However, after a failed attempt to break above its highs on September 2, Roche is currently in a support zone, having broken downward from the bullish channel it had held since May. In contrast, Novo Nordisk lost positions from June 24 until August 7, at which point it began to recover towards the middle of its long-term range. Currently, Roche could pull back to 214 Swiss francs if its downtrend continues. On the other hand, Novo Nordisk remains in an intermediate trading zone around $134, with a possible uptrend in the short term.
Ion Jauregui - ActivTrades Analyst
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All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
The weight-loss drug market, driven by the success of Novo Nordisk's Ozempic (ticker: NVO), is projected to reach $130 billion annually by the end of the decade. However, Roche faces challenges following trials of CT-996, where five out of six patients suffered nausea and one in six had “chronic reflux,” which has affected its competitiveness. Despite these adverse results, Manu Chakravarthy, director of product development for Roche's cardiovascular, renal and metabolism division, believes the trials are still encouraging and plans to continue with larger clinical studies to determine tolerability and improve the drug's profile.
Comparing the two companies' charts, Roche showed significant progress versus Novo Nordisk through July 31. However, after a failed attempt to break above its highs on September 2, Roche is currently in a support zone, having broken downward from the bullish channel it had held since May. In contrast, Novo Nordisk lost positions from June 24 until August 7, at which point it began to recover towards the middle of its long-term range. Currently, Roche could pull back to 214 Swiss francs if its downtrend continues. On the other hand, Novo Nordisk remains in an intermediate trading zone around $134, with a possible uptrend in the short term.
Ion Jauregui - ActivTrades Analyst
*******************************************************************************************
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
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