Does the Red-Hot Weight-Loss Market Make This Pharmaceutical Stock a Buy?
The idea that people could take a miracle drug to lose weight has been a foundation for scams going back decades. However, that's no longer the case. Pharmaceutical company Novo Nordisk (NYSE: NVO), traditionally an insulin manufacturer, has developed two products that help people lose weight. These products have gone viral in the United States, and have analysts racing to raise Novo Nordisk's forward-looking growth estimates.
But the shares are already up nearly 70% over the past 12 months. So let's crunch the numbers to help determine whether Novo Nordisk's success can last, and whether there's still an upside in the stock.
Novo Nordisk built its business on diabetes, introducing slow-acting insulin in 1936. Today, it's one of a handful of manufacturers that produce insulin.
Source Fool.com
