Stan Wong Novo-Nordisk NVO-N WATCH Sep 04, 2025

Now a whole slew of competitors in the weight-loss space. He'd prefer a more diversified pharma company.

He's out. Valuation has now become fairly attractive at 16x forward PE for 14-15% growth. Below 200-week MA, troubling. Long term, a name to look at again once things turn around. Losing some market share to LLY.

He prefers Eli Lilly, but shares of NVO have come down enough.

Overvalued to start with, and expectations were high. Small miss on weight loss percentage led to huge drop in stock price. LLY is grabbing more market share. Worry that drugs in US will face tariffs. Buy here, do well in the long run.

Deal to get off injectables and over to tablets. Went up too far, too fast, now has fallen. LLY has 60% of revenues in US, NVO has 60% outside US. Concern is that LLY's product helps people lose more weight. But Type 2 diabetics are still growing worldwide, especially in China and India.

Trades ~16x PE, lowest it's been in almost 20 years. He's buying more. The value is there, and the company's not getting any credit for its weight-loss drug. Don't hold both LLY and NVO, as it's correlation risk.

He's owned this since 2015, trimming 7 times (that's just good risk management). Markets were pushed well ahead of themselves in 2024, and then we saw a big retraction. Fast money has come out of this name. Down ~60%, growing double digits, 16x forward PE (vs. LLY at 43x forward PE). LLY is really strong in the US, but not outside. 

At this valuation, a no-brainer. Again, you make $$ when you buy not when you sell. He's going to wait and see what happens with the CEO position.

The key drug is its weight-loss one, a class of drugs he believes in and feels will be the biggest drug on the world ever, worth $120 billion in 2030. Huge growth. These drugs offer cardio benefits in addition to weight-loss. He prefers LLY.

It was the biggest European company last year. This and LLY are growing double digits and the market is growing double digits. Has owned NVO 9 years and trimmed it 7 times, and this is the first time he's bought more, on weakness. Obesity and diabetes are not going away. 

There are worried about generic weight-loss drugs coming. Pharmaceuticals are like fads and fashions, hard to know where the market will be. He avoids pharma.