Why Novo Nordisk A/S (NVO) Surged On Friday?

We recently published a list of Five Chinese Firms Dominate Friday’s Top 10 Gainers. In this article, we are going to take a look at where Novo Nordisk A/S (NYSE:NVO) stands against the other friday’s top gainers.

The stock market suffered a bloodbath on Friday, with major indices posting whopping declines, as investors sold off positions for saver havens amid concerns about a slowing economy and sticky inflation.

The Dow Jones fell by 1.69 percent, the S&P declined by 1.71 percent, while the tech-heavy Nasdaq nosedived by 2.20 percent.

Meanwhile, 10 stocks—predominantly Chinese firms—defied a broader market downturn, clocking in gains.

To come up with Friday’s best performers, we considered only the stocks with $2 billion in market capitalization and $5 million in daily trading volume.

An elderly couple receiving insulin from a pharmacist, representing healthcare company’s successful pharmaceutical products.

Novo Nordisk A/S (NYSE:NVO)

Novo Nordisk extended a four-day winning streak on Friday, adding 5.18 percent to close at $88.08 apiece as investors cheered news that its best-selling weight loss drug Wegovy and diabetes treatment Ozempic are now produced in sufficient quantities, two years after entering a supply shortage.

According to the Food and Drug Administration, supply is currently meeting or exceeding demand, and NVO has developed a product inventory to cover future demand.

“We are pleased the FDA has declared that supply of the only real, FDA-approved semaglutide medicines is resolved,” said Dave Moore, NVO executive vice president for US operations and global business development, while taking a swipe at manufacturers of the blockbuster drugs’ knock-offs.

According to Moore: “No one should have to compromise their health due to misinformation and reach for fake or illegitimate knockoff drugs that pose significant safety risks to patients.”

Overall, NVO ranks 10th on our list of friday’s top gainers. While we acknowledge the potential of NVO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVO but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.