10 Best Global Stocks To Buy Now

2. Novo Nordisk A/S (NYSE:NVO)

Number of Hedge Fund Holders In Q2 2024: 67

Novo Nordisk A/S (NYSE:NVO) is a specialty Danish pharmaceutical and biotechnology company that focuses on developing and selling treatments for diabetes, weight loss, and rare diseases. Courtesy of its weight loss drug Wegovy, the firm has managed to grow its revenue by 31% between 2022 and 2023. However, 2023 has also seen a markedly different environment for Novo Nordisk A/S (NYSE:NVO)’s weight loss drugs as Eli Lilly’s Zepbound secured FDA approval. in November. Now, with the US government upping the stakes on making drugs affordable through Medicare, reports suggest that Wegovy will be under the radar quite soon. This could create headwinds for Novo Nordisk A/S (NYSE:NVO), as the firm has already struggled with sales after lowering the prices of its weight loss drug. However, its considerable resources, as evidenced by cash and equivalents of $7.9 billion coupled with a specialty focus on diabetes have allowed Novo Nordisk A/S (NYSE:NVO) to have a robust drug pipeline. Two new drugs that it is developing are amycretin and CagriSema, and the stock could respond favorably to positive regulatory news.

Polen Capital mentioned Novo Nordisk A/S (NYSE:NVO) in its Q4 2023 investor letter. Here is what the fund said:

“As we discussed in last quarter’s commentary, Novo Nordisk is a newer addition to the strategy. Over the fourth quarter, we continued to build the position to an average weight. As a reminder, Novo Nordisk is a global pharmaceutical company based in Denmark and has long been the leader in developing insulin for diabetes patients. In recent years, the company’s innovation into GLP-1 drugs has been shown not only to help diabetics control blood sugar levels but also to have significant efficacy in weight loss. Obesity has become a global epidemic, creating materially negative knock-on effects for humans that range from an increase in cardiovascular events and, thus, higher mortality to a lower general quality of life. We believe that, over time, payors will recognize the value of these obesity treatments to both patients and the overall healthcare system.”