$NVO's weight loss drug semaglutide has been approved for NHS use
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.
Read more about the NHS news here: https://www.bbc.com/news/health-64874243
Are there any other pharma companies that you currently follow that have a similar solution? Just curious to understand how big of a breakthrough this will be compared to the alternatives in the market
@joeyhirendernath I'm not following other drug companies all that closely, but the two other major suppliers of insulin are Sanofi $SNY and Eli Lilly $LLY. SNY doesn't cut it for me as an investment vehicle for various reasons. Though LLY is on my watchlist.
@joeyhirendernath GLP-1s have been a huge breakthrough in diabetes management. Most of these drugs will get a 1 to 1.5 HbA1c reduction and 10 lbs of weight loss. I’ve been using GLP-1s in my clinic for 5 or so years now. Notably Trulicity from $LLY and Ozempic from $NVO. But I’m really excited about Mounjaro also from $LLY bc it’s dual mechanism on GLP1 and GIP. It gives improved diabetes control and in some patients significant weight loss (some achieving 40 lbs). The only current issue in use as a weight loss drug is insurances don’t cover it for this use. And without insurance it’s about $1000 a month.
@ifb_podcast you might be interested to read this.
Thanks, hadn’t seen this but another data point 🙏🙏
"More than half the planet is projected to be overweight or obese by 2035" — that is so scary!
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