Novo Nordisk celebrates its 100th anniversary this year. In the past year or so, it has become a household name thanks to Wegovy and Ozempic. What are the risks that stem from that attention, and just how significant is the long-term opportunity? In the first of a series of Digging Deeper conversations, Investment Manager, Lindsay Scott shares her thoughts on the obesity and diabetes markets and the outlook for Novo Nordisk.
Key takeaways
- The diabetic population is enormous but the obese population is even bigger, and Novo Nordisk’s products are game-changing for this market.
- The company is likely to surpass its 2025 obesity sales target this year.
- Competition exists but it is not a winner-takes-all market – and Novo Nordisk alongside Eli Lilly have a significant head start.
- The company has increased capacity and diversity of supply via CMOs and investing heavily in internal capacity.
- Novo Nordisk’s culture underpins its success, with down-to-earth management that’s not afraid to say when things haven’t gone to plan.
- Areas to watch include how long should people take the drug for, who will pay for it, and can the company maintain its culture amid rapid growth.
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