20 High Growth Mega Cap Stocks You Can Buy And Hold For Next 5 Years

12. Novo Nordisk A/S (NYSE:NVO) 

Novo Nordisk A/S is a manufacturer, researcher & developer, and distributor of pharmaceutical products. It operates through rare disease and diabetes and obesity Care segments. It offers products for obesity, rare blood disorders, cardiovascular, diabetes, rare endocrine disorders, and other therapy areas. The company has grown its revenue by 18.58% over the last 5 years.

NVO’s stock price fell after the CagriSema drug’s disappointing trial results. Despite strong earnings in the previous quarter, the share price has not recovered. Besides, last month the Amycretin trial results were released and stock showed an upward hike due to the satisfying results. Even though the drug won’t be available anytime soon as it is still in the early stages of testing, the long-term potential is quite clear.

Last year, the company increased its sales by 25% while operating margins also grew by 25%, raising the net profit by 21%. TD Cowen expects the company to be neck and neck in the weight loss drugs market with its semaglutide-based products Wegovy and Ozempic.

LLY and NVO are expected to remain the main drivers and beneficiaries of the market growth. But there are clinical and commercial lanes open to competition, and no dearth of market hopefuls vying for a spot as the diabetes and obesity landscape expands.

The company has a 45% market share in the weight loss market, behind only Eli Lily at 48%. This advantage should be strong enough for the company to fight off competition in the future.