Jim Cramer’s Latest Lightning Round: 12 Stocks to Watch

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

Number of Hedge Fund Holders: 67

When Cramer was asked about Novo Nordisk A/S (NYSE:NVO), he said, “Now look, I’ve gotta tell you, Novo Nordisk doesn’t hold a candle to Eli Lilly… Lilly’s the one.”

Novo Nordisk (NYSE:NVO) is engaged in the research, development, manufacture, and distribution of pharmaceutical products. With a legacy spanning over eight decades, the company has established a strong presence in diabetes care, holding a significant share of both the diabetes treatment and insulin markets. Its growth has been largely driven by its GLP-1 therapies, particularly Ozempic, which is used for diabetes management, and Wegovy, aimed at obesity treatment.

The company is actively pursuing the development of successors to Ozempic, leveraging its financial resources and entering into collaboration agreements with biotech firms that are working on innovative solutions. On September 16, it announced a collaboration with Korro Bio focused on drug development, valued at $530 million. The partnership includes funding for research and development, milestone payments, royalties, and an upfront payment to initiate the collaboration. Korro Bio is known for its expertise in RNA editing, with a platform that allows for the modification of messenger RNA (mRNA) before it is translated into proteins, potentially opening new avenues for therapeutic advancements.

In a competitive industry, maintaining a supply that meets market demand has emerged as a crucial factor for companies like Novo Nordisk (NYSE:NVO). Rival companies like Eli Lilly are not hesitant to capitalize on opportunities to increase market share. In February, the company made headlines with its intent to acquire Catalent, a contract development and manufacturing organization, in a deal valued at $16.5 billion. However, the acquisition has drawn scrutiny, particularly from Senator Elizabeth Warren, who has raised concerns about its potential implications for competition in the industry.