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Novo Nordisk Has a Fresh New Name -- but It Still Faces the Same Old Problems

By newsfeedback@fool.com (Reuben Gregg Brewer)

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In some ways, Novo Nordisk (NYSE: NVO) clearly has an image problem. It effectively created the GLP-1 weight-loss drug market when it launched Wegovy. But it quickly lost the lead in this emerging niche to competitor Eli Lilly (NYSE: LLY). Now, Novo Nordisk has a chance to make a comeback as it launches a pill version of its GLP-1 drug. As it undertakes this effort, the company has chosen to rebrand, an odd decision at such a critical time. Here's what may be going on.

The key sentence in the company's announcement about its name change is this one: "As part of this, we will embrace the shorthand 'Novo' as our day-to-day name, while Novo Nordisk A/S remains our legal global company name." So the company isn't really changing its name; it is simply changing its branding.

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