Top 10 health stocks to watch in 2021
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Novo Nordisk (NVO) market capitalization of approximately $ 200.53 billion
Novo Nordisk (NVO) is a Danish multinational pharmaceutical company that manufactures products including drugs for the treatment of diabetes and hormone replacement therapy. It is one of the largest insulin suppliers in the world.
Novo Nordisk’s earnings per share (EPS) grew 4.6% per year between 2017 and 2020, driving its share price up steadily, with an average annual share price increase of 10% .
Novo still generates around 85% of its revenue from diabetes care, but in recent years the focus has shifted from insulin to a new diabetes drug called GLP-1. The rise of its semi-glutid drug platform, Ozempic, has boosted its revenues in 2020, despite Covid-19.
Net profits for 2021 have already grown by more than 6% compared to 2020, with first quarter 2021 results showing an increase in the financial outlook for 2021 from 6% to 10%, with operating profit expected to grow by 5%. % to 9% in 2021.
Novo has made huge strides in its aspirations in diabetes and obesity drugs, which saw sales increase 8% in the first half of 2020 for obesity care, and an overall increase in sales by 30%. In fact, Novo is expected to begin phase three testing of its new obesity drug, which aims to help with weight loss, this year. There has been a lot of hype about the results of the injection in the first two stages of the track, after obtaining FDA approval for use in reducing the risk of cardiovascular events in patients with type 2 diabetes. This could prove to be a driving force behind future movements in Novo’s stock price.