3 Million Reasons Novo Nordisk Still Looks Like a Phenomenal Buy

Core Viewpoint - Novo Nordisk has shown significant stock performance, with a 120% increase since the start of 2022, outperforming the S&P 500's 8% return, and has further growth potential due to its weight-loss treatment Wegovy [1] Group 1: Product Performance and Market Potential - Wegovy has demonstrated impressive results in clinical trials, with an average weight loss of 15% after one year, and has recently been approved by the FDA to reduce cardiovascular risk in obese and overweight adults [2] - There is potential for over 3 million Medicare beneficiaries to gain coverage for Wegovy, which could significantly boost demand for the drug [2] Group 2: Supply Chain and Production Capacity - Novo Nordisk is currently using contract manufacturers to meet overwhelming demand for Wegovy and plans to invest $6 billion to expand manufacturing capacity in Denmark [3] - The company is also looking to acquire Catalent for $16.5 billion to enhance its production capabilities [3] Group 3: Financial Performance - In the first quarter, Novo Nordisk's sales increased by 22% to 65.4 billion Danish kroner ($9.8 billion), and net profit rose by 28% to 25.4 billion Danish kroner ($3.8 billion) [3] - Wegovy was the fastest-growing drug for the company, with sales rising by 106% year-over-year, while Ozempic grew at a rate of 42% [3] Group 4: Investment Outlook - Despite a 19% rise in shares this year, Novo Nordisk is still considered a strong investment opportunity due to its growth prospects, particularly from Wegovy and Ozempic [5] - The stock is trading at over 40 times earnings, indicating it is not a cheap buy, but the potential for growth in revenues and profits remains high [5]