1 Reason I'm Seriously Considering Novo Nordisk as a Buy‑and‑Never‑Sell Obesity Stock

First approved for treating diabetes successful precocious 2017, Novo Nordisk's (NYSE: NVO) GLP-1 cause Ozempic didn't truly instrumentality disconnected until astir 2021, with the summation of a mentation tailored to value loss, called Wegovy. Novo Nordisk's banal terms followed suit, gaining astir 60% that year.

By 2022, the Ozempic motor was gathering steam, boosting the company's full income maturation complaint to 18% (but adding lone 9% to nett income arsenic Novo Nordisk invested successful accumulation capacity). The institution truly deed its stride successful 2023 arsenic income soared 35%, and profits exploded 55% -- lone to spot the banal stumble erstwhile Eli Lilly (NYSE: LLY) arrived connected the country with Zepbound and Mounjaro successful 2024.

Where to put $1,000 close now? Our expert squad conscionable revealed what they judge are the 10 champion stocks to bargain close now, erstwhile you articulation Stock Advisor. See the stocks »

For Novo Nordisk's stock, it's been mostly downhill since. Its stock terms topped retired supra $142 successful 2024, astir the aforesaid clip Lilly began stealing its marketplace share, past started sliding. At the adjacent of trading past week, the banal was selling for astir $47 per share, 67% beneath its peak.

Viewed from different perspective, though, it doesn't outgo overmuch much than it did backmost erstwhile the Ozempic craze began 5 years ago. Investors contiguous person been fixed a 2nd accidental to buy, hold, and possibly ne'er merchantability shares successful the institution that invented a caller mode to suffer weight.

I, for one, americium earnestly considering taking vantage of the opportunity.

One crushed I'm peculiarly enthused astir Novo Nordisk banal is that, successful astatine slightest 1 way, past seems to beryllium repeating itself.

Five years ago, the institution started the GLP-1 craze, and monopolized the marketplace until Eli Lilly showed up. Now Novo Nordisk erstwhile again has the marketplace mostly to itself, arsenic it segues from injectable Wegovy and Ozempic to caller pill-based forms. The Food and Drug Administration (FDA) approved oral Wegovy successful December, and oral Ozempic past month.

How agelong volition it instrumentality Eli Lilly to drawback up with its ain GLP-1 pills? To beryllium honest, astir apt not long: Lilly is simply a savvy company. It's seen already what Mounjaro and Zepbound tin bash for its bottommost line, adjacent with needles involved. Today it's seeing the occurrence Novo Nordisk is enjoying present that Wegovy tin beryllium taken arsenic a tablet. Lilly won't hold agelong to bring its ain pills to market; indeed, an FDA determination approving a Mounjaro pill is expected successful the 2nd 4th of this year.

And that's fine. Forewarned is forearmed, and Novo Nordisk has seen this movie before, too. It knows Lilly is coming for it. And aft losing circular 1 successful injectables, Novo Nordisk is definite to combat harder to clasp marketplace stock successful oral GLP-1 drugs.