Novo Nordisk's stock is up today, trading at $107.20, a 2.52% increase from the previous close of $104.56. This rise follows the Biden administration's proposal, announced on November 26, to expand Medicare and Medicaid coverage to include weight-loss drugs like Novo Nordisk's Wegovy. The proposal could potentially provide access to these drugs for millions of Americans, significantly broadening the market for Novo Nordisk's products. The move is seen as a game changer for those who cannot afford these treatments otherwise, with the potential to save the government money on obesity-related health issues in the long term.
The proposal, however, faces potential opposition from Robert F. Kennedy Jr., President-elect Donald Trump's nominee for Secretary of Health and Human Services, who has been critical of weight-loss drugs. Despite this, the market appears optimistic about the potential expansion of coverage, which could drive significant growth for Novo Nordisk.