Copenhagen-listed shares in pharmaceuticals giant Novo Nordisk (NOVO-B.CO) rose more than 6% on Monday, after the company announced that its blockbuster weight-loss drug Wegovy had been approved in the US to treat a form of liver disease.
Novo (NOVO-B.CO) said in an announcement on Friday that the US Food and Drug Administration (FDA) had approved Wegovy for the treatment of noncirrhotic metabolic dysfunction-associated steatohepatitis (MASH) in adults with moderate to advanced liver fibrosis, in combination with a reduced calorie diet and increased physical activity.
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The company said that accelerated approval is based on part one of a trial, in which Wegovy, demonstrated a statistically significant and superior improvement in liver fibrosis with no worsening of steatohepatitis, as well as resolution of steatohepatitis with no worsening of liver fibrosis compared to a placebo.
The news offers a boost to Novo Nordisk (NOVO-B.CO), which has been facing increasing competition in the weight-loss market, with shares in company currently down nearly 46% year-to-date.
Martin Holst Lange, executive vice president, chief scientific officer and head of research and development at Novo (NOVO-B.CO), said: “Wegovy is now uniquely positioned as the first and only GLP-1 treatment approved for MASH, complementing the already proven weight loss, cardiovascular benefits and extensive body of evidence linked to semaglutide.”
In addition, Novo said on Monday it was lowering the cost of its diabetes drug Ozempic to $499 (£368) per month for eligible cash-paying patients in the US, according to a Reuters report.
Shares in Palo Alto Networks (PANW) hovered just below the flatline on Monday morning, ahead of the US cybersecurity company reporting its fourth quarter earnings later in the day.
The company had guided to revenue for the quarter in the range of $2.49bn to $2.51bn, which would represent year-over-year growth of between 14% and 15%.
Shares in the Palo Alto (PANW) came under pressure following the release of its third quarter earnings in May, as the results failed to impress investors.
The cybersecurity company’s third quarter revenue came in at $2.3bn, just above expectations, while adjusted earnings per share (EPS) were $0.80.
Shares in Walmart (WMT) were also trending on Monday, ahead of the company reporting its second quarter earnings on Thursday. Walmart’s results are closely watched by investors as it is the largest retailer in the US, so it is considered to act as a barometer for consumer sentiment.
The stock is up nearly 11% year-to-date but edged lower after Walmart (WMT) released a mixed set of first quarter results in May.
Walmart (WMT) posted first quarter revenue of $165.5bn, which was up 2.5% from the same period last year, though this missed Wall Street expectations of $166.02bn. Adjusted earnings per share grew 1.7% year over year to $0.61, beating estimates of $0.58. US same-store sales also beat expectations with a 4.5% increase, led by health and wellness, and groceries.
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John David Rainey, chief financial officer of Walmart (WMT), said in the earnings release that the company had decided to hold off on providing a specific range of guidance for operating income growth and earnings per share for the second quarter, given the “dynamic nature of the backdrop”.
Walmart (WMT) did guide to net sales growth of 3.5% to 4.5% for the quarter, based on the $167.8bn it reported a year ago.
AJ Bell’s (AJB.L) investment director Russ Mould and head of financial analysis Danni Hewson said that analysts expect a headline figure for net sales of $174bn.
“That turns into a consensus analysts’ forecasts for [net profit in] the second quarter of $5.8bn, and a headline earnings per share (EPS) figure of $0.72, up from $0.67 a year ago,” they said.
Shares in Soho House (SHCO) surged nearly 16% shortly after the market open on Monday, after the members’ club business confirmed that it would be taken private.
In a statement released on Monday, Soho House said that it had entered into definitive agreements with an investor group led by MCR Hotels, which will buy the company’s outstanding shares not held by certain significant shareholders.
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Shareholders will receive $9 per share in cash under the terms of the deal, which implies a total enterprise value of about $2.7bn for the company.
Soho House said that private equity firm Apollo, which owns Yahoo, would be providing financing for the deal through a “customised hybrid capital solution”.
In addition, the company said that further new equity capital would be provided by a consortium of strategic investors led by actor-turned-investor Ashton Kutcher, who will also join the company’s board of directors following completion of the transaction.
Shares in Chinese electric vehicle company Nio (9866.HK) jumped nearly 7% on Monday, after announcing its expansion into three new markets.
Nio (9866.HK) said in announcement on Monday that it planned to enter Singapore, Uzbekistan and Costa Rica in 2025 and 2026.
Chris Chen, head of global business development at Nio (9866.HK), said: “To accelerate our entry into diverse global markets, Nio is partnering with experienced players who have deep local expertise and extensive distributor networks.
“They will help us introduce our high-quality smart electric vehicles to new markets more efficiently.”
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