What happened
Novo Nordisk (NVO -1.93%) had yet another good session on the stock market Tuesday. Shares of the pharmaceutical stock of the moment gained 1.8% in value on the day, easily topping the 0.2% rise of the S&P 500 index. An analyst's positive note on the stock and an update about the company's share-repurchase program were the two main drivers of the increase.
So what
That morning, before market open, Deutsche Bank's Emmanuel Papadakis reiterated his buy recommendation on Novo Nordisk at a price target of 1,450 Danish krone ($208) per share. That implies nearly 30% upside to the shares' current level.
The reasoning behind Papadakis' continued bullishness on the pharmaceutical company's prospects wasn't immediately apparent. It's not hard to be optimistic about its future, however.
Novo Nordisk is the developer of semaglutide, which has been approved by the U.S. Food and Drug Administration (FDA) for the treatment of type 2 diabetes and obesity. The company continues to develop the drug for other indications, as well.
Separately, Novo Nordisk issued an update on its current share-repurchase program. The company said it has accumulated just under 1.25 million shares of its B Class of stock, at a total transaction value of 1.42 billion krone ($204 million). That initiative was launched in early May and will run until Aug. 8. All told, Novo Nordisk will buy back up to 5.8 billion krone ($833 million) worth of the securities.
Now what
The branded forms of semaglutide (Ozempic, Wegoy, and Rybelsus) have received a great deal of attention lately. This isn't surprising, given the molecule's weight-shedding qualities.
Until an effective rival medication hits the market, we can count on this continuing. Tuesday likely won't be the last up day for Novo Nordisk stock.
