Is the hype about weight loss pills over? Novo Nordisk's "dead bulls" have also begun to sell stocks significantly
鹏尚思密达
发表于 2023-11-27 20:05:30
2416
0
0
A top performing European fund manager who has long held Novo Nordisk signals that the hype about weight loss pills should come to an end. Since the beginning of this year, the stock price of Novo Nordisk (US stock) has risen by over 57%.
Niall Gallagher manages a stock fund under the global investment management company GAM Investments, which has a return rate of 14% this year. Gallagher recently stated in an interview that he has reduced his holdings of Novo Nordisk's stock by about half because the hype surrounding the Danish pharmaceutical company's weight loss pills has gone too far, leading to a significant surge in the company's stock valuation.
Gallagher said, "We have been doing Dono and Nord for a long time, but now there is a lot of hype, and not just in the stock market, you can see news about these weight loss pills everywhere."
Although he did not see any competitors between Novo Nordisk and Lilly, which also produces the weight loss drug Mounjaro, Gallagher pointed out that for a considerable period of time, pharmaceutical companies did not have permanent patents for their drugs, and patents would sometimes expire.
According to data, Gallagher's managed fund size reached 473 million euros ($518 million), outperforming 88% of its peers this year. In the latest documents submitted at the end of October, the fund's main holdings include Nestle, London Stock Exchange Group, and Linde Group. Novo Nordisk was the fund's largest holding stock at the end of July, but it has now dropped to the fifth largest holding stock.
Wegovy, a new generation of highly effective weight-loss drug, and GLP-1 (glucagon like peptide-1), a diabetes drug, have made the market imaginative. In September, Novo Nordisk surpassed LVMH, a French luxury giant, and became the listed company with the highest market value in Europe.
Due to strong market demand, Wegovy is facing a shortage of supply, and Novo Nordisk has limited the number of countries listed and the number of patients who can start treatment. Currently, Wegovy is only listed in the United States, United Kingdom, Germany, Norway, and Denmark.
At present, Novo Nordisk's 12 month expected P/E ratio is close to 33 times, much higher than the long-term average of 19 times, and the Stoke 600 Healthcare Index's P/E ratio is 17 times. Its stock price is also close to the average target price of 31 analysts tracked by Bloomberg, indicating that there is almost no room for the company's stock price to rise next year.
Although most analysts still give Novo Nordisk a buy rating, some people have become skeptical after the stock surged. UBS analyst Michael Leuchten said that the revenue opportunity for the weight loss business may not be as significant as the current valuation of Novo Nordisk suggests.
According to FactSet data, sales of Novo Nordisk's Novo Nordisk and Wegovy, as well as Lilly's Mounjaro, are expected to reach $21 billion this year and increase to $53 billion by 2028.
Gallagher claims that he remains optimistic about the medium to long term prospects of Novo Nordisk as he believes that growth remains strong despite strong demand and supply constraints.
He added that from the perspective of balancing risk and return, it is no longer as attractive. In terms of valuation multiples, the current price has reached the limit they are willing to pay.
CandyLake.com 系信息发布平台,仅提供信息存储空间服务。
声明:该文观点仅代表作者本人,本文不代表CandyLake.com立场,且不构成建议,请谨慎对待。
声明:该文观点仅代表作者本人,本文不代表CandyLake.com立场,且不构成建议,请谨慎对待。
猜你喜欢
- Oral "weight loss medication" further advances Novo Nordisk oral semaglutide weight loss phase III research success
- Is the dual monopoly situation of Novo Nordisk Lilly in danger? By 2029, there may be 16 GLP-1 weight loss drugs on the market
- Novo Nordisk faces US Senate inquiry over weight loss drug prices
- The US Senate questions whether the pricing of the "weight loss miracle drug" is too high. Nuo and Nuo De respond that lowering the price is useless
- Novo Nordisk to invest 864 million Brazilian reals to renovate insulin factory in Brazil
- Novo Nordisk to invest 864 million Brazilian reals to renovate insulin factory in Brazil
- Novo Nordisk reaches settlement with Mylan Pharmaceuticals over patent dispute over weight loss drug Ozempic and Wegovy
- Novo Nordisk has participated in the CIIE for seven consecutive years, working together with various sectors to promote the concept of "healthy metabolism"
- Novo Nordisk warns of the risk of compound generic semaglutide, which has caused 10 deaths and 100 hospitalizations
- Lai Lai scares, Novo Nordisk saves the scene! The market prospects of weight loss drugs still make many players salivate
-
知名做空机构香橼研究(Citron Research)周四(11月21日)在社交媒体平台X上发布消息称,该公司已决定做空“比特币大户”微策略(Microstrategy)这家公司,并认为该公司已经将自己变身成为一家比特币投资基金 ...
- caffycat
- 昨天 11:18
- 支持
- 反对
- 回复
- 收藏
-
每经AI快讯,11月20日,文远知行宣布旗下自动驾驶环卫车S6与无人扫路机S1分别在新加坡滨海湾海岸大道与滨海艺术中心正式投入运营。据介绍,这是新加坡首个商业化运营的自动驾驶环卫项目。 ...
- star8699
- 3 天前
- 支持
- 反对
- 回复
- 收藏
-
上证报中国证券网讯(记者王子霖)11月20日,斗鱼发布2024年第三季度未经审计的财务报告。本季度斗鱼依托丰富的游戏内容生态,充分发挥主播资源和新业务潜力,持续为用户提供高质量的直播内容及游戏服务,进一步 ...
- goodfriendboy
- 3 天前
- 支持
- 反对
- 回复
- 收藏
-
人民网北京11月22日电 (记者栗翘楚、任妍)2024广州车展,在新能源汽车占据“半壁江山”的同时,正加速向智能网联新能源汽车全面过渡,随着“端到端”成为新宠,智能驾驶解决方案成为本届广州车展各大车企竞 ...
- 3233340
- 昨天 17:06
- 支持
- 反对
- 回复
- 收藏