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Novo Nordisk Inks Diabetes Deal with University of Oxford

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Novo Nordisk A/S (NVO - Free Report) and University of Oxford announced a landmark research collaboration for the treatment of type II diabetes. The partnership will enable scientists from Novo Nordisk and University of Oxford to work together towards bringing innovative approaches for treating type II diabetes.  Also, Novo Nordisk will invest in a new research centre on the premises of the University of Oxford.

Novo Nordisk’s share price has declined 36% in the past one year, compared with the Zacks classified Large Cap Pharmaceuticals industry’s fall of 2.4%.

Novo Nordisk is expected to make an investment of around 1 billion DKK over a period of 10 years and employ around 100 Novo Nordisk researchers, based in an Oxford University research centre. Additionally, the company will focus on innovation within early stage research that has potential to substantially impact future treatment of type II diabetes and its complications.

Novo Nordisk’s expertise in the area of diabetes coupled with the expertise of leading scientists from the University of Oxford will lead to innovative therapies and a new generation of treatments to treat people suffering from type II diabetes.  

Novo Nordisk has a strong presence in the diabetes care market with a global value share of 27%, supported by one of the broadest diabetes portfolios in the industry comprising drugs like Victoza, Levemir and modern insulins. The company anticipates continually strong performance of these modern insulins and Victoza to contribute significantly to its top-line growth. Victoza is currently the market leader in the GLP-1 segment with a 60% share.

Zacks Rank & Key Picks

Novo Nordisk currently carries a Zacks Rank #4 (Sell).  Some better-ranked stocks in the health care sector include Sunesis Pharmaceuticals, Inc. , Enzo Biochem, Inc. (ENZ - Free Report) ,  and Anika Therapeutics Inc. (ANIK - Free Report) .

While Sunesis sports a Zacks Rank #1 (Strong Buy), Enzo Biochem and Anika carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

Enz Biochem’s loss estimates for 2017 narrowed 5.88% over the past 60 days. The company recorded a positive earnings surprise in three of the last four quarters, the average being 22.50%. Its share price was up 46.4% in the past one year.

Anika’s earnings estimates for 2016 and 2017 were up 3.9% and 0.5%, respectively, over the last 60 days. The company recorded a positive earnings surprise in each of the last four quarters, the average being 33.14%. Its share price was up 33.9% in the past one year.

Sunesis’ loss estimates narrowed 5.06% and 8.80% for 2016 and 2017, respectively, over the past 60 days. The company recorded a positive earnings surprise in three of the last four quarters, the average being 0.54%.

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