Novo Nordisk (NYSE:NVO) has been one of my favorite big pharmas for a while.
In the most recent quarter, sales were up 6% and earnings rose 17%. A good portion of those sales came from more than doubling the expected sales of Victoza, one of its leading insulin treatments.
Also, Novo Nordisk continues to have a positive outlook, raising its full-year 2011 sales outlook to 10% to 11% growth. Not bad in these tough economic times, but as much as I like NVO, its slowing sales have triggered a downgrade in my view. I now consider NVO to be a hold.
If you own it, keep holding it. I still like the stock, and I like the 1.3% dividend investors receive, too!
“An innovative company addressing a wildly game-changing trend.”
The diabetes trend is staggering. By 2034, the number of diabetes patients is expected to double while the cost of treating those patients in the U.S. alone is expected to triple to $336 billion — and NVO is in the catbird seat.
Novo Nordisk is one of the first to take its vast product pipeline to the booming populations in China, which actually is facing its own diabetes epidemic. The company draws on 90 years of research and development, continues to produce ever-improving therapies and is considered an expert marketer with a loyal base of medical professionals and customers.
When you add that Novo Nordisk’s global leadership is in an area producing millions of new patients annually, you have the makings of a game-changer.
NVO has pulled back from its April high of $132 down to current prices around $113, giving you a nice entry point for a company whose growth drivers remain firmly in place.