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If You Invested $1000 in Novo Nordisk a Decade Ago, This is How Much It'd Be Worth Now

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How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.

Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.

What if you'd invested in Novo Nordisk (NVO - Free Report) ten years ago? It may not have been easy to hold on to NVO for all that time, but if you did, how much would your investment be worth today?

Novo Nordisk's Business In-Depth

With that in mind, let's take a look at Novo Nordisk's main business drivers.

Bagsværd, Denmark-based Novo Nordisk is a global healthcare company and a leader in the worldwide diabetes market with a full portfolio of GLP-1 receptor agonists, modern insulins and human insulins. The company is also a key player in hemophilia care, growth hormone therapy, hormone replacement therapy and obesity.

Novo Nordisk operates through two segments: Diabetes and obesity care and Biopharmaceuticals. While the Diabetes and obesity care segment covers insulins, glucagon-like peptide 1 (GLP-1), other protein-related products, obesity and oral anti-diabetic drugs, the Biopharmaceuticals segment includes hemophilia, growth hormone therapy and hormone replacement therapy.
Novo Nordisk’s most well-known drugs include Levemir, NovoRapid, Victoza, Ozempic, NovoMix, NovoSeven, NovoThirteen, Ryzodeg, Xultophy, Saxenda, Rybelsus, Esperoct, Sogroya and Norditropin, among several others. The company launched its first product for weight management, Saxenda, in the United States in 2015.

Wegovy, Novo Nordisk’s other obesity care product, was approved by the FDA in June 2021, following which it faced supply issues in the United States, which led to a decline in sales upon launch. However, the issue was resolved by Novo Nordisk, making all dose strengths of Wegovy available in the United States in December 2022.

In October 2022, Novo Nordisk acquired Forma Therapeutics for $11 billion. Forma therapeutics is a company focused on providing innovative treatment to transform the lives of patients suffering from sickle cell disease (SCD) and rare blood disorders. The acquisition of the company along with Forma’s lead development candidate, etavopivat, complements Novo Nordisk’s vision to accelerate its scientific presence and pipeline in hemoglobinopathies.
Novo Nordisk generated revenues of DKK 177 billion in 2022 compared with DKK 141 billion in 2021. Revenues increased by 26% in Danish kroner and 16% at the currency exchange rate.

Bottom Line

Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Novo Nordisk, if you bought shares a decade ago, you're likely feeling really good about your investment today.

A $1000 investment made in March 2013 would be worth $4,088.84, or a 308.88% gain, as of March 3, 2023, according to our calculations. Investors should note that this return excludes dividends but includes price increases.

The S&P 500 rose 162.24% and the price of gold increased 11.95% over the same time frame in comparison.

Looking ahead, analysts are expecting more upside for NVO.

Novo Nordisk beat earnings estimates in the fourth quarter but missed on revenues. Novo Nordisk has one of the broadest diabetes portfolios in the industry. Ozempic and Rybelsus have been performing well in the market. Drug sales have been gaining and maintaining momentum. Label expansion of the existing drugs is likely to boost sales further in the days ahead. Ozempic is off to a solid start since its launch and will drive growth for the company. The launch of Rybelsus also looks impressive. The supply issues with Wegovy areresolved now. The patent expiry on some of the products in Novo Nordisk’s portfolio remains a woe. Shares of the company have outperformed the industry in the past year.

Shares have gained 8.51% over the past four weeks and there have been 3 higher earnings estimate revisions for fiscal 2023 compared to none lower. The consensus estimate has moved up as well.

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