Shares of Novo Nordisk (NYSE: NVO) fell on Monday, finishing down 5.6%. The drop comes as the S&P 500 and the Nasdaq Composite gained 1.5% and 2.6%, respectively. The Danish drugmaker's stock slumped after the company announced that a Phase II trial had failed to show positive results.

Novo's trial setback tests GLP-1-heavy ETFs, highlighting concentration risks while Eli Lilly's diversified pipeline offers relative resilience.

Novo Nordisk said on Monday that two late-stage trials testing an older oral version of its semaglutide drug failed to meet their main goal, sending shares of the Danish drugmaker down around 9% to their lowest level since July 2021.

Novo has experienced a prolonged sell.off over the last months, declining more than 65% from all-time highs. Why some kind of pessimism is justified, the current market cap is way to low considering Novo's presence in two of the most promising healthcare segments. By underlying realistic growth rates, Novo is undervalued by up to 85%.