Back to top

Image: Bigstock

Why Should You Invest in Novo Nordisk (NVO) Stock Right Now

Read MoreHide Full Article

Novo Nordisk (NVO - Free Report) enjoys a robust presence in the Diabetes care market, with a global value market share of 27%. The company has a leading presence in the total insulin market, and modern and new-generation insulin market, with a global value market share of 46% and 45%, respectively.

The current quarter has seen some events happening for the company that bode well for its growth. One of such events include the FDA’s approval for a new indication for Victoza (liraglutide) to reduce the risk of major adverse cardiovascular (CV) events in adults with type II diabetes and established CV disease in August 2017. The FDA's decision was based on the results from the landmark LEADER trial, which demonstrated that Victoza statistically significantly reduced the risk of cardiovascular death, non-fatal heart attack or non-fatal stroke by 13% versus placebo, when added to standard of care, with an absolute risk reduction of 1.9%.

Also  in September, the Committee for Medicinal Products for Human Use (CHMP), under the European Medicines Agency (EMA), endorsed an update of the European Union (EU) label for Tresiba (insulin degludec) to include results from the DEVOTE trial on severe hypoglycaemia.  In addition, the European Commission in July approved an update to the Victoza (liraglutide) EU label that expands the indication to reflect both improving blood sugar and cardiovascular (CV) events as integral parts of type II diabetes treatment.

The label expansions for Victoza and Tresiba are anticipated to boost the company’s sales in the near future.

Novo Nordisk’s shares have outperformed the industry year to date. The stock has surged 37.3% compared with the industry’s gain of 18%.

Novo Nordisk also received the FDA approval for its fast-acting mealtime insulin aspart — Fiasp — for the treatment of adults with diabetes in September 2017. This approval was based on results from a phase III study, showing that Fiasp improved overall blood sugar (HbA1c) and post-meal sugar (postprandial glucose or PPG) control over 52 weeks compared with conventional insulin aspart (NovoRapid).

Novo Nordisk has a sturdy pipeline, primarily focusing on therapeutic proteins within insulin, GLP-1, blood clotting factors and human growth hormone. We are encouraged by the company’s efforts to develop new treatments for diabetes, which is its core area of expertise. Key pipeline candidates include semaglutide and nonacog beta pegol.

 

Novo Nordisk A/S Price and Consensus

 

Novo Nordisk A/S Price and Consensus | Novo Nordisk A/S Quote

Zacks Rank & Other Stocks to Consider

Currently, Novo Nordisk carries a Zacks Rank #2 (Buy). Other similarly-ranked stocks in the health care sector include Bayer Aktiengesellschaft (BAYRY - Free Report) , ACADIA Pharmaceuticals Inc. (ACAD - Free Report) and Aduro BioTech, Inc. . You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Bayer’s earnings per share estimates have moved up from $2.17 to $2.24 for 2017 and from $2.37 to $2.39 for 2018, in the last 60 days. The company pulled off positive earnings surprises in three of the trailing four quarters, the average beat being 10.10%. The share price of the company has increased 31.9% year to date.

Over the last 60 days, ACADIA’s loss per share estimates narrowed from $2.63 to $2.52 for 2017 and from $1.92 to $1.85 for 2018. The company delivered positive earnings surprises in two of the trailing four quarters, with an average beat of 7.97%. Year to date, share price of the company has climbed 30.3%.

Aduro’s loss estimates per share have moved down from $1.36 to $1.29 for 2017, in 60 days’ time. The company recorded positive earnings surprises in two of the trailing four quarters, generating an average beat of 2.53%.

Today's Stocks from Zacks' Hottest Strategies

It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.

And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation. See Them Free>>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Novo Nordisk A/S (NVO) - free report >>

Bayer Aktiengesellschaft (BAYRY) - free report >>

ACADIA Pharmaceuticals Inc. (ACAD) - free report >>

Published in