Novo Nordisk(NVO)

Novo Nordisk

Stock: NVO

Rating: Good

Author: Waleed M. Tariq

Summary

  • The first 3 quarters of 2021 saw robust sales of obesity medicines.
  • Obesity and related disorders are on the rise globally.
  • The development of new obese therapy, Wegovy, surpassed the anticipation.

Bullish

  • Wegovy, new obesity therapy, surpassed expectations.
  • Novo Nordisk is poised to profit as the main insulin provider and has solid obesity pipeline.
  • Their share of the market in rapid markets is also encouraging.

Bearish

  • With the company having some drugs in trials, it isn’t a guarantee that they will meet the standards and get the approval, as a result that poses a risk to the firm since it has financial implications especially in the research process.

A Firm leader in Diabetic therapies

  • Below is a chart showing NVO’s share of the market as of Q3 2021, being the leading firm in diabetic therapies.

 

  • The company’s market in fast-growing markets also seems good.

Robust Pipeline for diabetes comorbidities

  • Recent research shows that nearly 90% of patients with type diabetes have two or more chronic diseases. 
  • Hypertension (82.1%), obesity (78.2%), hyperlipidemia (77.2%), chronic renal disease (24.1%), and cardiovascular disease were the most frequent concomitant conditions (21.6 percent ). 
  • The trend appears to be continuing, with market value exploding globally.
  • Their late-stage medications have shown promise in previous stages.

Conclusion

  • Novo’s expertise in diabetes therapy helps them expand into obesity and other illnesses. 
  • Ozempic will help the company extend its diabetic market share, while semaglutide has other promising uses. NVO is worth buying since sales are growing and the future looks interesting.