8 Most Promising Healthcare Stocks According to Hedge Funds

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

Number of Hedge Fund Holders: 61 

Novo Nordisk A/S (NYSE:NVO) is a Danish pharmaceutical company that specializes in diabetes care and other chronic diseases. At its core, the company develops, produces, and markets innovative biological medicines. Its primary focus is on insulin products for diabetes treatment, but the company is also concentrated on growing its market share and improving the products it offers, especially in the treatment of diabetes and obesity.

At constant exchange rates, Novo Nordisk A/S (NYSE:NVO) had a remarkable sales growth of 25% in the first half of 2024, mostly due to rising demand for its GLP-1-based diabetic and obesity medicines. The company is effectively reaching more patients with cutting-edge treatments like Wegovy and Ozempic, as seen by the 36% growth in North American operations and the 11% growth in foreign operations. Additionally, Novo Nordisk is making progress in research and development, as seen by encouraging outcomes from clinical studies for medications targeted at diseases like cardiovascular risk and hemophilia A. It is among the most promising stocks in the healthcare sector.

Furthermore, Novo Nordisk A/S (NYSE:NVO) is successfully controlling supply and demand as it strategically introduces Wegovy, a weight-loss drug, into foreign markets. In the diabetes industry, the company has also significantly increased its market share, surpassing its target of one-third of the market by 2025 and currently holding a 34.1% worldwide value market share. The business exhibits a strong dedication to innovation with a solid product pipeline and current clinical studies.

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. As of Q3 2024, 61 hedge funds in the Insider Monkey database held shares in the company. 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 period. 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.”