Many investors weren't feeling the holiday spirit on Wednesday, as many titles traded down and led the S&P 500 index to post its worst daily decline since October. But some titles escaped the gloom to close in positive territory.
One was Denmark-based pharmaceutical sector star Novo Nordisk(NYSE: NVO), which ended the day more than 1% higher. A positive story in a major newspaper about the company's leading products was a major reason for the stock's rise.
This could be just the beginning for Wegovy and Ozempic
Obesity treatment Wegovy and its sibling diabetes medication Ozempic are the runaway healthcare industry successes of the moment. An article published Wednesday in the ever-influential New York Times pointed out that semaglutide, the two drugs' active ingredient, is currently being actively investigated for other beneficial effects on health.
Wegovy is already highly popular due to its weight-loss properties. Anecdotal evidence suggests that it and its semaglutide sibling Ozempic might confer other benefits. For example, some users have reported that the use of such drugs has made them want to drink alcohol less than previously. That could help patients with alcohol use disorder -- commonly known as alcoholism -- surmount their affliction.
Wegovy and Ozempic could also treat certain disorders indirectly. According to the Times' story, in a small clinical trial gauging the effects of semaglutide treatments on polycystic ovary syndrome, most participants not only lost weight but had more regular periods (irregular discharges are one symptom of the disorder).
Much remains to be seen, however
It needs to be stressed that these findings are only at a very early stage, and much clinical work needs to be done in order to discover more about them. Still, Novo Nordisk's two monster drugs are already hot items, and this will only add to their cachet and appeal. The same goes for the pharmaceutical company that developed and sells them.
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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends Novo Nordisk. The Motley Fool has a disclosure policy.
