Novo Nordisk A/S (NVO): Today's Featured Drugs Loser

Novo Nordisk A/S ( NVO) pushed the Drugs industry lower today making it today's featured Drugs loser. The industry as a whole closed the day up 1.4%. By the end of trading, Novo Nordisk A/S fell $2.37 (-1.8%) to $133.05 on heavy volume. Throughout the day, 701,780 shares of Novo Nordisk A/S exchanged hands as compared to its average daily volume of 395,600 shares. The stock ranged in price between $130.54-$133.05 after having opened the day at $130.70 as compared to the previous trading day's close of $135.42. Other company's within the Drugs industry that declined today were: NPS Pharmaceuticals ( NPSP), down 11.9%, China Botanic Pharmaceutical ( CBP), down 6.5%, Cytokinetics ( CYTK), down 6.4%, and Cormedix ( CRMD), down 5.6%.

Novo Nordisk A/S, a healthcare company, engages in the discovery, development, manufacture, and marketing of pharmaceutical products in Denmark and internationally. The company operates in two segments, Diabetes Care and Biopharmaceuticals. Novo Nordisk A/S has a market cap of $78.58 billion and is part of the health care sector. The company has a P/E ratio of four, below the average drugs industry P/E ratio of 24.4 and below the S&P 500 P/E ratio of 17.7. Shares are up 13.7% year to date as of the close of trading on Thursday. Currently there are two analysts that rate Novo Nordisk A/S a buy, one analyst rates it a sell, and two rate it a hold.

TheStreet Ratings rates Novo Nordisk A/S as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

On the positive front, ProPhase Labs ( PRPH), up 12.9%, Opexa Therapeutics ( OPXA), up 12.5%, Omeros Corporation ( OMER), up 12.5%, and Synthetic Biologics ( SYN), up 11.7%, were all gainers within the drugs industry with Abbott Laboratories ( ABT) being today's featured drugs industry winner.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the drugs industry could consider SPDR S&P Pharmaceuticals ETF ( XPH) while those bearish on the drugs industry could consider ProShares UltraShort Nasdaq Biotech ( BIS).
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