With the collective girth of the Western world continuing to expand as sodium- and sugar-rich processed foods unleash a veritable obesity pandemic, the pharma giant Novo Nordisk is positioned just right to benefit from this health crisis on the back of the virtually ceaseless demand for the weight-loss drug Ozempic.
As we detailed in a previous post, Novo Nordisk’s Ozempic was approved by the US FDA in 2017 for patients with type-2 diabetes. In December 2022, the FDA approved Ozempic’s new variant – Wegovy – to treat obesity in teens aged 12 years and above. Critically, clinical trials showed that patients taking Wegovy regularly could lose around 15 percent of their body weight. Both Ozempic and Wegovy mimic the hormone glucagon-like peptide-1 (GLP-1), which targets brain areas that regulate appetite.
Ozempic is About to Place Novo Nordisk at the Apex of a List of Europe's Most Valuable Companies
Earlier in August, Novo Nordisk announced that its revenue for H2 2023 increased by 30 percent on an annual basis to reach 107.7 billion Danish Kroner or $10.17 billion. Much of this growth was driven by the company's GLP-1 lineup, including Ozempic, which witnessed an annual sales growth of 59 percent to reach 41 billion Danish Kroner or $3.94 billion. More astonishing still, Wegovy registered sales growth of 367 percent on an annual basis in the first half of 2023, managing to earn 12 billion Danish Kroner in revenue.
With over 42 percent of the adults in the US continuing to suffer from obesity, it is hardly surprising that North America constitutes the fastest growing region for Novo Nordisk. In H1 2023, the company's North American sales grew by 28 percent relative to the comparable period of 2022.
GLP-1 (Ozempic) doubters:
New peer reviewed Max Planck Institute study on GLP-1 agonist Liraglutide published today indicates that the weight loss drug Improves associative learning.
The random miracle side effects keep coming, GLP-1 agonists are now :
1.) Anti-Diabetic… pic.twitter.com/ItMsERiKwy
— Floates0x (@floates0x) August 17, 2023
Meanwhile, the associated benefits of GLP-1 drugs like Ozempic keep mounting. As per a recent peer-reviewed study, GLP-1 can also improve associative learning. This is in addition to the hormone's anti-diabetic, weight-loss-inducing, anti-addiction, and nootropic effects.
Novo Nordisk $NVO is getting close to becoming Europe’s most valuable public company pic.twitter.com/96Yj21F0Mv
— Savvy Trader (@SavvyTrader) August 30, 2023
Given the giant headstart that Novo Nordisk currently commands when it comes to weight-loss drugs, it is hardly a surprise that the company is about to dethrone LVMH to become Europe's most valuable enterprise.
Do you think Ozempic's gradual ascendancy toward a lifestyle drug is about to unlock sizable capital gains for Novo Nordisk shareholders? Let us know your thoughts in the comments section below.
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