6. Novo Nordisk A/S (NYSE:NVO)
5-Year Revenue CAGR: 17.17%
Number of Hedge Fund Holders: 67
Novo Nordisk A/S (NYSE:NVO) is a global healthcare company based in Denmark, primarily focused on developing and manufacturing medicines for chronic diseases. The company is a leader in diabetes care, obesity care, hemophilia care, therapies for rare endocrine disorders, and other treatments that help millions of people around the world. With a strong commitment to research and innovation, Novo Nordisk has research and development centers in five countries and operates production facilities in nine countries. The company offers its products in 170 countries worldwide, allowing it to reach a diverse range of patients and healthcare providers.
The company is focused on expanding its market presence and enhancing its product offerings, particularly in diabetes and obesity care. In the first half of 2024, Novo Nordisk A/S (NYSE:NVO) experienced impressive sales growth of 25% year-over-year at constant exchange rates, driven largely by increased demand for its GLP-1-based diabetes and obesity treatments. With North American operations growing by 36% and international operations growing by 11%, the company is successfully reaching more patients through innovative therapies like Wegovy and Ozempic. Novo Nordisk is also making strides in research and development, with promising results from clinical trials for treatments aimed at conditions such as hemophilia A and cardiovascular risk.
Additionally, Novo Nordisk A/S (NYSE:NVO) is strategically rolling out its weight-loss medication, Wegovy, in international markets while managing supply and demand effectively. The company has also gained significant market share in the diabetes sector, now holding a 34.1% global value market share, surpassing its goal of reaching one-third market share by 2025. With a robust pipeline of products and ongoing clinical trials, the company demonstrates a strong commitment to innovation.
These factors position Novo Nordisk A/S (NYSE:NVO) well for continued growth, making it an attractive stock option for investors looking for long-term potential in the healthcare sector. Analysts are also bullish on NVO. Analysts currently hold a consensus buy rating on the stock and the 1-year median price target of $155.12 set by analysts indicates a potential upside of 31% from current levels.
Over the past five years, Novo Nordisk A/S (NYSE:NVO) has achieved an average annual growth rate of 17.17% in revenue and 19.06% in net income.
According to Insider Monkey’s Q2 2024 database of over 900 hedge funds, 67 hedge funds held stakes in Novo Nordisk A/S (NYSE:NVO). Artisan Partners stated the following regarding Novo Nordisk A/S (NYSE:NVO) in its “Artisan Global Equity Fund” Q1 2024 investor letter:
“In addition, shares of Novo Nordisk A/S (NYSE:NVO) rose after it reported phase 1 clinical trial results for its new experimental obesity drug Amycretin, a single molecule that operates as a GLP-1 receptor agonist, reducing one’s appetite. The new oral treatment achieved a 13.1% average weight loss after 12 weeks, more than doubling the efficacy of Wegovy for the same time span. This result also bested Lilly’s Orfoglipron, another experimental drug that achieved 5%–6% average weight loss earlier in its trials. While the Amycretin data are preliminary, investors were encouraged by the prospects of Novo Nordisk solidifying a best-in-class obesity designation, a desirable status given rising competition. In our view, Novo Nordisk has the best obesity/Type 2 diabetes pipeline in the industry, which should help protect this franchise from competition over the next 10 years.”
