Novo Nordisk's weight loss "wonder-drug" semaglutide, which is sold under the brand names Ozempic, Wegovy and Rybelsus, will now be available for UK patients through the NHS.
More than half the planet is projected to be overweight or obese by 2035, driving up cases of type 2 diabetes, heart disease and some cancers. While this is a disturbing and costly trend, NVO is in prime position to help, giving the company a large growth runway.
Despite the recent run in price — it's up almost 40% this year with a high P/E to boot — I've started a small position, roughly 2% of my portfolio by cost basis.
It's certainly not a deep value pick, nor is it a high growth stock. But its outstanding free cash flow, huge moat, clean balance sheet, and incredible return on invested capitol are enticing enough to dip my toes in, secure in the fact that its products are essentially recession proof. The fact that it's a long-time Terry Smith pick makes it even sweeter, and its low beta should help ease the volatility of my portfolio.