Daily Stock Pick for October 25, 2023

When you read the words “transformational technology”, the first thing that likely comes to your mind is AI.

And you’re not wrong…

Because AI will transform everything – and we’re only just scratching the surface of its full potential.

Today’s stock pick is about another transformational technology.

It’s not AI – but its impact could be felt FAR more immediately than AI and on a MUCH more personal level.

Because this technology could make an immediate impact on the lives of over 130 million Americans – and over 1.5 billion people worldwide…

And one company is the dominant player behind this technology.

Its stock price has already jumped by over 80% in the past year thanks to this…

But this could just be the start.

Novo Nordisk A/S (NVO)

NVO is the Danish multinational pharma company behind Ozempic and Wegovy – two drugs that have taken the world by storm – and propelled this company to become Europe’s largest by market cap. These drugs help treat obesity and Type 2-diabetes, two common “lifestyle” diseases that have become more and more common/

And yet, with over 130 million adults in the U.S. (and over 1.5 billion adults worldwide) suffering from obesity or Type 2 diabetes, we could only be starting to realize its potential. Ozempic alone accounted for over 65% of total prescriptions in the U.S. – and that was at the end of 2022.

In the meantime, these drugs’ sales have surged, with NVO reporting a 58% yearly growth for 1H2023 for Ozempic and a whopping 367% yearly growth for Wegovy. And trials are currently underway to see whether these drugs can be used to treat other conditions such as fatty liver.

Of course, NVO is not the only ones investigating a similar class of drugs. Pharma giant Eli Lilly is also waiting approval for its own obesity drug. But with a P/E ratio of 46x – compared to Eli Lilly’s 83x – NVO looks to be a better deal. On top of that, it’s already taken pole position when it comes to these drugs, making it a double whammy.

To your wealth,
Felix @ Ace of Investing