Shares of Novo Nordisk (NVO 0.84%) were moving 2.3% higher as of 10:24 a.m. ET on Monday. The gain appeared to be the result of two factors, one of which is specific to the big drugmaker.
First, the overall stock market was up Monday morning. Second, Reuters reported on Sunday evening that the Indian online marketplace IndiaMART is working to stop illegal sales of Novo Nordisk's weight loss drug Wegovy.
How big is IndiaMART's move for Novo Nordisk?
Novo Nordisk hasn't officially launched Wegovy or its sibling product, Ozempic, in India. Both products are actually the same drug (semaglutide), but Wegovy targets weight loss while Ozempic targets type 2 diabetes. The big drugmaker hopes to launch Wegovy in the Indian market in 2026 contingent upon obtaining the necessary regulatory approvals.
However, IndiaMART's steps to curtail illegal sales of Wegovy nonetheless help Novo Nordisk right now. That's because India allows the sales of drugs that have been approved in other countries to be imported and sold in the country if an Indian company obtains an import license. Also, anything that IndiaMART does over the near term to reduce the illegal selling of Wegovy should benefit Novo Nordisk when it officially introduces the drug in India.
Is Novo Nordisk stock a buy?
Sales for Ozempic and Wegovy should continue to soar. I expect Novo Nordisk stock to rise again in 2024 as a result. However, Eli Lilly's tirzepatide, which is marketed as Mounjaro in treating type 2 diabetes and Zepbound in treating weight loss, appears to have an efficacy advantage over Novo Nordisk's Ozempic and Wegovy. I don't think that Novo Nordisk stock is a bad pick, but I think that Eli Lilly is an even better pharma stock to buy.
