Renaissance Technologies Portfolio: Top 10 Stock Picks

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

Stake Value as of Q4 2024: $715,083,916

Novo Nordisk A/S (NYSE:NVO) is a global healthcare company, headquartered in Bagsværd near Copenhagen, Denmark. It specializes in the treatment of obesity, diabetes, and other rare diseases. The company markets its products in over 180 countries. Its medicines, most notably Ozempic, Rybelsus, and Wegovy have helped improve the lives of diabetes and obesity patients worldwide.

On February 5, the company announced financial results for fiscal 2024. Operating profit increased 25% year-over-year to DKK 128.3 billion. Sales from North American operations grew 30%, while international operations sales were up 17% from last year. Sales within Diabetes and Obesity care increased by 26% during the year.

However, the company is going through a challenging period. Novo Nordisk A/S (NYSE:NVO)’s share price has dropped by 38% over the past six months, amid mixed trial results and regulatory pressures. The Centers for Medicare & Medicaid Services (CMS) recently announced including Ozempic and Wegovy in its list of drugs for price negotiations, which sent shockwaves in the industry and led to a further dip in the company’s share price.

On the positive side, Novo Nordisk A/S (NYSE:NVO) made headlines last month after it revealed encouraging results from a trial for Semaglutide 7.2 mg, demonstrating superior weight loss compared to placebo. The results reflect the company’s commitment to introducing innovative treatments, especially for chronic disease management.

Wall Street analysts remain bullish on the stock, with a consensus Strong Buy rating and an average share price upside potential of 69%. Investor sentiment also remains strong. According to Insider Monkey, 64 hedge funds held a stake in the company at the end of the fourth quarter of 2024, an improvement from 61 at the end of the third quarter.

Novo Nordisk A/S (NYSE:NVO) is one of the top stock picks from the Renaissance Technologies portfolio, with the hedge fund having investments of over $715 million in the company.