Novo Nordisk Is Scaling a Barrier to Growth. Should You Buy Its Stock Now?
With best-selling medicines for type 2 diabetes and obesity in hand, Novo Nordisk (NYSE: NVO) isn't content to let the chips fall where they may when it comes to patients having access to Ozempic and Wegovy. Thanks to the two drugs becoming a social phenomenon in the developed world, demand is running far above the company's ability to supply doses, potentially crimping its pace of revenue growth.
But where there's a shortage, there's money to be made in closing the gap, and that's exactly what Novo Nordisk is doing. But will it be able to satisfy consumers before competitors make inroads in the market? Let's explore the issue a bit further and determine how it might impact a person's decision to invest.
Since its first approval by the Food and Drug Administration (FDA) in 2021, more than 1 million people in the U.S. have taken Wegovy for weight loss. In 2023, revenue from the company's obesity care segment skyrocketed by 147%, nearly reaching $6 billion, with Wegovy doubtlessly being the segment's knight in shining armor. Given Novo's total 2023 sales of $33.7 billion, the drug's importance as a driver of growth is difficult to understate. But capturing all the growth possible isn't going to happen if there aren't enough doses to go around.
Source Fool.com
