Maybe you’re not very familiar with Danish drugmaker Novo Nordisk (NYSE:NVO) stock. However, there’s a good chance that you’ve heard about at least one of Novo Nordisk’s well-known products.
NVO stock earns a “B” grade because Novo Nordisk is a pharmaceutical giant that’s launching a blockbuster drug in the vast E.U. market.
It’s surprising that more U.S. financial traders don’t pay attention to Novo Nordisk. Maybe that’s because it’s a Danish company.
That’s fine because you can still choose to invest Novo Nordisk if you see a favorable risk-reward scenario in 2023.
NVO Stock Could Get Un-Stuck Soon
After rallying from around $135 to $160 earlier this year, NVO stock has been stuck near $160 for a frustratingly long time. So, is there a catalyst to get the stock un-stuck before the year’s end?
Novo Nordisk’s share buyback program might do the trick. Specifically, the company announced a share repurchase program of up to 5.8 billion DKK, and that’s part of a large program of up to 30 billion DKK.
That’s encouraging, but what will really move the needle is the revenue generating potential of Novo Nordisk’s most famous prescription drugs. These include weight loss drug Wegovy and diabetes drug Ozempic.
Wegovy is so popular that Reuters described the demand for the drug as “soaring.” Fortune reported shortages of Wegovy, to the point that doctors are prescribing Ozempic “as an off-label alternative” for weight loss.
Novo Nordisk Launches Its Weight Loss Drug in Germany
If Novo Nordisk’s biggest problem is that its products are so popular that the company is facing shortages, that’s not a terrible problem to have. Truly, Wegovy sales could be the catalyst that brings NVO stock to the next level this year.
Plus, there could be more good news in the pipeline. Novo Nordisk is reportedly running clinical trials to determine if Wegovy can treat Alzheimer’s disease.
Beyond the moneymaking potential, we should all hope that Novo Nordisk succeeds in its quest to treat this unfortunate ailment.
Novo Nordisk has multinational ambitions for Wegovy. The company is introducing Wegovy in Germany, and this represents the first launch of this drug into a large European market.
Wegovy was already available in the U.S., Norway and Denmark. If the drug is a blockbuster success in Germany, however, this could open the door to commercialization opportunities in other lucrative E.U. regions.
Patience Could Pay Off With NVO Stock
Is an investment in Novo Nordisk right for you? It depends on your willingness to wait. Novo Nordisk’s German Wegovy launch might take a while to succeed. Or, it might not succeed at all.
There are no guarantees here. But then, that’s true with pharmaceutical stocks. If you’re looking for guarantees, this isn’t the right investment for you.
All in all, NVO stock gets a “B” grade and may be appropriate for investors with patience. Novo Nordisk’s shareholders should have some tolerance for risk. Still, Novo Nordisk definitely looks interesting because of the revenue generating potential of Ozempic and especially Wegovy.
On the date of publication, Louis Navellier had a long position in NVO. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.
The InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.