Novo Nordisk: Is the FDA Approval of Wegovy Worth an Extra $460 Bn?

Novo Nordisk ADR: Is The Obesity Franchise Growth A Major Growth Drivers? – Key Drivers

Healthcare Equity Analyst - Emerging & Dev Markets, daaimon

Avien Pillay

Healthcare Equity Analyst - Emerging & Dev Markets

daaimon

daaimon is an independent research company focusing on healthcare and consumer sectors across developed and emerging markets. We produce insightful research which challenges conventional thinking. In particular, we look for new ideas by testing consensus forecasts and markets expectations.

Equity Bottom-Up

<ul>
<li>We believe the FDA approval of the Wegovy pill improves affordability and convenience and significantly increases the size of the potential market.</li>
<li>After a massive spending drive from 2021 to 2024, management embarked on right-sizing the company with the announcement of 9000 retrenchments and $1.25 bn cost savings.</li>
<li>Competition is expected to increase over the next few years. At a FPE of less than 15 times and an EV/EBITDA of 10.5, we believe the risks are adequately discounted.</li>
</ul>


We believe the FDA approval of the Wegovy pill improves affordability and convenience and significantly increases the size of the potential market.
After a massive spending drive from 2021 to 2024, management embarked on right-sizing the company with the announcement of 9000 retrenchments and $1.25 bn cost savings.
Competition is expected to increase over the next few years. At a FPE of less than 15 times and an EV/EBITDA of 10.5, we believe the risks are adequately discounted.


Novo Nordisk (NVO US) – Time for an Upgrade!