Novo Nordisk, a Danish drugmaker, experienced a significant increase in stock after announcing that it would halt the kidney disease treatment trial for its semaglutide injection drug, Ozempic. The decision came after a committee analyzed the trial data and identified positive signs of success. The stock rose by 5.5%, indicating investor confidence in the drug’s potential for treating Type 2 diabetes.
The news also had an impact on other companies in the healthcare industry. Eli Lilly, which manufactures the diabetes drug Mounjaro, saw a 3.8% increase in its stock following Novo Nordisk’s announcement.
However, the dialysis services providers DaVita and Fresenius Medical Care experienced a decline in their stock prices. DaVita’s shares sank by 18.4%, while Fresenius Medical Care saw a 19.6% drop. The negative impact was attributed to Novo Nordisk’s news regarding Ozempic’s kidney disease treatment trial. Baxter International, known for producing products for chronic dialysis therapies, also suffered a 9% slide in its stock.
In the oil and gas industry, Exxon Mobil witnessed a more than 4% decrease in its shares. This decline followed the company’s decision to acquire shale rival Pioneer Natural Resources in a $59.5 billion all-stock deal. Pioneer stockholders, on the other hand, saw a 1% increase in their shares after the announcement. The deal is Exxon Mobil’s largest since its acquisition of Mobil and is expected to close in the first half of 2024.
Humana, a healthcare company, experienced a 2% decrease in its stock as CEO Bruce Broussard announced his plans to step down in the latter half of 2024. He will be replaced by Jim Rechtin, who currently serves at Envision Healthcare.
On a positive note, Amgen, a biopharma company, saw a 3.5% increase in its stock after receiving an upgrade from Leerink to “outperform.” Analyst David Risinger pointed to an expanding earnings multiple and pipeline newsflow as catalysts for the upgrade.
Shoals Technologies, a company specializing in energy storage solutions, saw its shares rise by 6.3% after Goldman Sachs upgraded it from “neutral” to “buy.” The investment bank cited valuation and the potential for gross margin upside as reasons for the upgrade.
Ally Financial, a provider of loans to midsize businesses, experienced a 3.6% drop in its stock. This decline followed CEO Jeffrey Brown’s announcement of his plans to step down, effective January 31, 2024.
In the retail sector, Walgreens Boots Alliance, a pharmacy chain, witnessed a 1% increase in its stock as it announced the appointment of Tim Wentworth as CEO, effective from October 23. Wentworth is a former executive from Cigna.
Coherent, a company specializing in photonics and lasers, experienced a 5.8% increase in its stock during midday trading. The rise was attributed to Coherent’s announcement that Japanese companies would invest $1 billion in its silicon carbide business. Additionally, B. Riley upgraded the stock from “neutral” to “buy,” stating that Coherent’s silicon carbide business could be worth more than currently estimated.
The battery company Plug Power saw a 3.4% climb in its stock after projecting a sharp rise in revenue up to approximately $6 billion by 2027, according to a regulatory filing.
Take-Two Interactive Software, a renowned video game company, witnessed a 1.2% increase in its shares after receiving an upgrade from Raymond James to “outperform” from “market perform.” The upgrade was based on expectations of consistent video game releases and a reasonable valuation, especially with the upcoming release of Grand Theft Auto 6.
These developments in the stock market were reported by CNBC, with contributions from reporters Michael Bloom, Hakyung Kim, Yun Li, and Lisa Han.