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Here's Why You Should Add Novo (NVO) Stock to Your Portfolio
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Novo Nordisk A/S (NVO - Free Report) is a Denmark-based 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 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.
Let’s delve deeper to discuss four reasons why adding Novo Nordisk stock to your portfolio may prove beneficial in 2023.
Favorable Share Price Movement: Novo Nordisk has been able to outperform the industrydue to its strong presence in the Diabetes Care market and boasts a strong pipeline with a focus on therapeutic proteins within insulin. In the past year, the shares of Novo Nordisk are up 34.7% compared with the industry’s short rise of 2.6%.
Image Source: Zacks Investment Research
Strong Foothold in the Diabetes Market: Novo Nordisk has a strong presence in the Diabetes care market with one of the broadest diabetes portfolios in the industry.
Novo Nordisk has improved the global diabetes value market share over the last 12 months from 30.1% to 31.9% owing to Rybelsus, Ozempic and Victoza’s strong performance.
The GLP-1 segment’s value share of the total diabetes market has increased to 33.5% compared with 26.5% a year ago. Novo Nordisk continues to be the global market leader in the GLP-1 segment with a 54.9% value market share, an increase of 2.2 percentage points from last year.
Other Drugs Performing Well: In late 2020, the FDA approved an updated label for Saxenda injection 3 mg to include the treatment of obesity in adolescents (12-17 years) with body weight above 60 kg and an initial body mass index corresponding to 30 kg/m2 or greater for adults, as an adjunct to a reduced-calorie diet and increased physical activity.
In January 2020, Ozempic was approved in the United States for cardiovascular risk reduction in people with type II diabetes and established cardiovascular diseases. Label expansion of the drugs will boost sales. Ozempic is currently approved in the United States in 0.5 mg and 1.0 mg doses for the treatment of type II diabetes in adults. In August 2020, once-weekly somapacitan was approved by the FDA under the brand name Sogroya for the treatment of adults with growth hormone deficiency. The drug has also been approved in the European Union (EU).
In June 2021, the FDA approved semaglutide as a weekly 2.4 mg injection for weight management in people living with obesity under the brand name Wegovy.
In March 2022, the FDA approved once-weekly Ozempic (semaglutide 2.0 mg) for the treatment of type II diabetes in the United States. Ozempic is now approved at 0.5 mg, 1.0 mg and 2.0 mg doses in the United States.
Encouraging Pipeline Progress: In August 2022, Novo Nordisk announced positive data from a phase II study evaluating CagriSema, a once-weekly subcutaneous combination of semaglutide and a novel amylin analogue, cagrilintide, for treating patients with type II diabetes. The phase II study evaluated the safety and efficacy of a fixed dose combination of CagriSema (2.4 mg semaglutide and 2.4 mg cagrilintide) versus individual components semaglutide (2.4 mg) and cagrilintide (2.4 mg) in people with type 2 diabetes and overweight.
In February 2023, Novo Nordisk and Tokyo-based partner, Heartseed Inc., jointly announced the dosing of the first patient in a phase I/II LAPiS study to evaluate HS-001, an investigational cell therapy for heart failure. The LAPiS study is an open-label dose escalation study in patients with advanced heart failure caused by ischaemic heart disease, conducted at various study sites in Japan.
Per an independent safety evaluation committee, Novo Nordisk and Heartseed have been given the approval to continue the study, based on a four-week data evaluation of the patient with advanced heart failure.
Novo Nordisk has also initiated two phase I studies in non-alcoholic steatohepatitis based on the siRNA technology platform.
The patent expiry on some of the products in Novo Nordisk’s portfolio is highly concerning, making the company vulnerable to generic competition in the market. Victoza is slated to lose patent protection in the United States and EU in the days ahead.
The company also faces stiff competition from other pharma goliaths, Merck (MRK - Free Report) , Eli Lilly (LLY - Free Report) and Sanofi (SNY - Free Report) . Merck’s Januvia and Janumet (type II diabetes), Eli Lilly’s Trulicity (type II diabetes) and Sanofi’s Toujeo (type I and II diabetes) have already been approved. The company also faces stiff competition from Eli Lilly and Astra Zeneca in the global GLP-1 market. However, both Merck and Sanofi are also struggling against generics losing sales volumes of their products.
Despite the competition, Novo Nordisk’s diabetes and obesity care segment remains the growth engine for the company. Ozempic sales are expected to boost the company’s top line in the upcoming quarters.
Image: Shutterstock
Here's Why You Should Add Novo (NVO) Stock to Your Portfolio
Novo Nordisk A/S (NVO - Free Report) is a Denmark-based 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 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.
Currently, Novo Nordisk sports a Zacks Rank #1 (Strong Buy).You can see the complete list of today’s Zacks #1 Rank stocks here.
Let’s delve deeper to discuss four reasons why adding Novo Nordisk stock to your portfolio may prove beneficial in 2023.
Favorable Share Price Movement: Novo Nordisk has been able to outperform the industrydue to its strong presence in the Diabetes Care market and boasts a strong pipeline with a focus on therapeutic proteins within insulin. In the past year, the shares of Novo Nordisk are up 34.7% compared with the industry’s short rise of 2.6%.
Image Source: Zacks Investment Research
Strong Foothold in the Diabetes Market: Novo Nordisk has a strong presence in the Diabetes care market with one of the broadest diabetes portfolios in the industry.
Novo Nordisk has improved the global diabetes value market share over the last 12 months from 30.1% to 31.9% owing to Rybelsus, Ozempic and Victoza’s strong performance.
The GLP-1 segment’s value share of the total diabetes market has increased to 33.5% compared with 26.5% a year ago. Novo Nordisk continues to be the global market leader in the GLP-1 segment with a 54.9% value market share, an increase of 2.2 percentage points from last year.
Other Drugs Performing Well: In late 2020, the FDA approved an updated label for Saxenda injection 3 mg to include the treatment of obesity in adolescents (12-17 years) with body weight above 60 kg and an initial body mass index corresponding to 30 kg/m2 or greater for adults, as an adjunct to a reduced-calorie diet and increased physical activity.
In January 2020, Ozempic was approved in the United States for cardiovascular risk reduction in people with type II diabetes and established cardiovascular diseases. Label expansion of the drugs will boost sales. Ozempic is currently approved in the United States in 0.5 mg and 1.0 mg doses for the treatment of type II diabetes in adults. In August 2020, once-weekly somapacitan was approved by the FDA under the brand name Sogroya for the treatment of adults with growth hormone deficiency. The drug has also been approved in the European Union (EU).
In June 2021, the FDA approved semaglutide as a weekly 2.4 mg injection for weight management in people living with obesity under the brand name Wegovy.
In March 2022, the FDA approved once-weekly Ozempic (semaglutide 2.0 mg) for the treatment of type II diabetes in the United States. Ozempic is now approved at 0.5 mg, 1.0 mg and 2.0 mg doses in the United States.
Encouraging Pipeline Progress: In August 2022, Novo Nordisk announced positive data from a phase II study evaluating CagriSema, a once-weekly subcutaneous combination of semaglutide and a novel amylin analogue, cagrilintide, for treating patients with type II diabetes. The phase II study evaluated the safety and efficacy of a fixed dose combination of CagriSema (2.4 mg semaglutide and 2.4 mg cagrilintide) versus individual components semaglutide (2.4 mg) and cagrilintide (2.4 mg) in people with type 2 diabetes and overweight.
In February 2023, Novo Nordisk and Tokyo-based partner, Heartseed Inc., jointly announced the dosing of the first patient in a phase I/II LAPiS study to evaluate HS-001, an investigational cell therapy for heart failure. The LAPiS study is an open-label dose escalation study in patients with advanced heart failure caused by ischaemic heart disease, conducted at various study sites in Japan.
Per an independent safety evaluation committee, Novo Nordisk and Heartseed have been given the approval to continue the study, based on a four-week data evaluation of the patient with advanced heart failure.
Novo Nordisk has also initiated two phase I studies in non-alcoholic steatohepatitis based on the siRNA technology platform.
The patent expiry on some of the products in Novo Nordisk’s portfolio is highly concerning, making the company vulnerable to generic competition in the market. Victoza is slated to lose patent protection in the United States and EU in the days ahead.
The company also faces stiff competition from other pharma goliaths, Merck (MRK - Free Report) , Eli Lilly (LLY - Free Report) and Sanofi (SNY - Free Report) . Merck’s Januvia and Janumet (type II diabetes), Eli Lilly’s Trulicity (type II diabetes) and Sanofi’s Toujeo (type I and II diabetes) have already been approved. The company also faces stiff competition from Eli Lilly and Astra Zeneca in the global GLP-1 market. However, both Merck and Sanofi are also struggling against generics losing sales volumes of their products.
Despite the competition, Novo Nordisk’s diabetes and obesity care segment remains the growth engine for the company. Ozempic sales are expected to boost the company’s top line in the upcoming quarters.
Novo Nordisk A/S Price and Consensus
Novo Nordisk A/S price-consensus-chart | Novo Nordisk A/S Quote