Here's How Much You'd Have If You Invested $1000 in Novo Nordisk a Decade Ago
How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in Novo Nordisk (NVO) ten years ago? It may not have been easy to hold on to NVO for all that time, but if you did, how much would your investment be worth today?
Novo Nordisk's Business In-Depth
With that in mind, let's take a look at Novo Nordisk's main business drivers.
Bagsværd, Denmark-based Novo Nordisk is a global healthcare company and a leader in the worldwide diabetes market. The company is also a key player in hemophilia care, growth hormone therapy, hormone replacement therapy and obesity.
Novo Nordisk operates through two segments: Diabetes and obesity care and Biopharmaceuticals. While the Diabetes and obesity care segment covers insulins, glucagon-like peptide 1 (GLP-1), other protein-related products, obesity and oral anti-diabetic drugs, the Biopharmaceuticals segment includes hemophilia, growth hormone therapy and hormone replacement therapy.
Novo Nordisk’s most well-known drugs include Levemir, NovoRapid, Victoza, Ozempic, NovoMix, NovoSeven, NovoThirteen, Ryzodeg, Xultophy, Saxenda, Rybelsus, Esperoct, Sogroya and Norditropin, among several others. The company launched its first product for weight management, Saxenda, in the United States in 2015.
In August 2018, Novo Nordisk announced that it has acquired all of the shares of Ziylo Ltd. Ziylo is a University of Bristol spin-out company based at Unit DX science incubator in the United Kingdom. The acquisition gives Novo Nordisk full rights to Ziylo's glucose binding molecule platform to develop glucose responsive insulins (GRIs). Novo Nordisk is focused on developing this technology in order to develop this next generation of insulin, which would lead to a safer and more effective insulin therapy.
Novo Nordisk generated revenues of DKK 140,800 million in 2021 compared with DKK 126,946 million in 2020. Revenues increased 11% in Danish kroner and 14% at currency exchange rate.
Bottom Line
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Novo Nordisk ten years ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in January 2013 would be worth $4,140.27, or a gain of 314.03%, as of January 4, 2023, and this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 162.04% and gold's return of 6.62% over the same time frame.
Analysts are forecasting more upside for NVO too.
Novo Nordisk has one of the broadest diabetes portfolios in the industry. Drug sales have been gaining and maintaining momentum. Label expansion of the existing drugs is likely to boost sales further in the days ahead. Promising diabetes drug, Ozempic is off to a solid start since its launch and remains the growth engine for the company. The launch of Rybelsus also looks impressive. However, lower realized prices in the United States, loss of exclusivity for products and stiff competition can affect sales. The supply challenges for Wegovy have hurt the stock. The patent expiry on some of the products in Novo Nordisk’s portfolio remains a woe. Shares of the company have outperformed the industry year to date.
The stock is up 8.88% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 2 higher, for fiscal 2022. The consensus estimate has moved up as well.
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Novo Nordisk AS (NVO) : Free Stock Analysis Report
