- Novo Nordisk is a Danish pharmaceutical company specializing in treatments for diabetes, obesity, and rare diseases.
- The company’s main source of income comes from diabetes treatments, including insulin products and GLP-1 receptor agonists.
- Novo Nordisk has a long-term growth strategy, focusing on the development of new treatments for cardiovascular diseases, Alzheimer’s, Parkinson’s, and other emerging markets.
Introduction
Perhaps you have all heard about Novo Nordisk (NVO, OTCPK:NONOF) in recent months or years. Either due to the spectacular performance, it has had in the stock market in recent years or due to the launch of the popular Ozempic and Wegovy. Novo Nordisk is a Danish pharmaceutical company that has just celebrated its 100 years of history, specializing in developing treatments for diabetes, obesity, and rare diseases.
I have always been very reluctant to invest directly in pharmaceutical companies. I believe it is a sector in which it is difficult to maintain lasting competitive advantages due to patents and the continuous need for innovation. Those who follow me know that I expose the healthcare sector through Danaher and Thermo Fisher, two companies completely unrelated to this inherent cyclicality of patents and in which value creation is simpler (I recommend taking a look at my Deep Dive on Thermo Fisher). However, upon delving deeper into Novo Nordisk, I have been pleasantly surprised by how special this company is and how well they have done things.
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