gorodenkoff/iStock via Getty Images
- Novo has helped to create a new market that should provide over 20% growth in the medium term.
- Three additional drivers for Novo include increasing obesity treatment capacity, insurance coverage, and the development of new pill-based obesity treatments.
- At 1.5x PEG I arrive at a YE25 price target of US$162 +29% upside potential.
IntroductionI recently analyzed a new ETF focused on the obesity theme called Tema Obesity & Cardiometabolic (HRTS) which increased my knowledge base of the sector and motivated me to dive deeper into one of the industry leaders Novo Nordisk (NVO). As I mentioned in the HRTS article, obesity may be due to a combination of genetic instincts and the ability of modern society to feed itself, without exerting energy, which has led to an overabundance of fat storage. This negative feedback loop or almost autoimmune syndrome has resulted in a host of health consequences such as diabetes, heart disease, and cancer to name a few. Novo´s pioneering diabetes drug led to the now famous Wegovy obesity treatment that has created a massive new market and is in higher demand than can be supplied.
READ FULL ARTICLE HERE!
