Shares of Novo Nordisk, the maker of the diabetes drug Ozempic, are said to have risen 42% this year, according to Bloomberg data released over the weekend, with investors predicting the big pharma company to reach a potential net worth of $100bn by 2030. The dramatic climb made Novo Europe’s biggest registered company this year.
Shares for Ozempic parent company, Novo Nordisk, rise 42% in 2023
On Sunday, 17th December, industry experts noted that while the firm has grown rapidly in 2023, keeping momentum throughout 2024 will be noticeably harder, with investors predicting only a 9% upside on average for next year.
Nick Cameron Source: LinkedIn
Portfolio manager at Antipodes Partners, Nick Cameron, noted 2024 investor predictions:
[Novo is] an excellent R&D company, and they’re very well managed. We can’t make the valuation work at these levels.
Ailsa Craig, co-manager of the International Biotechnology Trust, also suggested that many investors are unsure whether “Lilly and Novo have run their course”. Craig continued:
Have the huge sales numbers been factored into their valuations now, and is it sort of a bubble? That’s a big debate.
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Novo’s upcoming obesity medication, CagriSema, is currently in advanced clinical trials and is said to help patients shed approximately 25% of their body weight. The company has admitted to being on the hunt for contracts surrounding CargiSema to ensure its 2024 results live up to this year’s standards. Ozempic’s GLP-1 drug also helps to treat mild dementia symptoms associated with Alzheimer’s disease.
