Novo-Nordisk (NVO)

Weight-loss drugs, where there's substantial runway. This one and LLY have a massive lead over everyone else. Could be used to actually prevent diabetes, an absolutely terrible disease. Risks: more competition, short on supply, government restrictions on price charged. Yield is 1.5%.

It's too early to tell what the long-term results of the weight-loss drugs, but short term people are buying them. You need to know a lot of tech and chemistry to understand pharma stocks and he doesn't care to do that. If you believe their drug prices will fall and more people will use them, then these share will rise.

High growth ahead. Europe's most valuable company by market cap. They lead the market in diabetes care, supplying half the world's insulin. Command one-third of the diabetes treatment business. Their weight-loss drug is growing strong which also prevents stroke and drives more demand. The chart is a dream. 18-20% EPS growth lies ahead.

It has quality drugs including a weight loss drug and pays a dividend. There are two main risks, one being that insurance companies may not be able to pay for the weight loss drug until the pricing comes down. Also we don't really know what the side effects are and may not know for another five years. You can buy on weakness for exposure to the sector.

Also owns LLY and bought NVO for the same reasons: the obesity tailwind, but NVO is cheaper than LLY at 37x forward PE. This and LLY have 80-80% market share with tremendous growth and cash flow.

She missed the trade, but would get in on a pullback. Certainly, there is a market (and growth) for obesity drugs like NVO's.

Big difference between a company and a stock. It's like buying a jacket for different price points of $1000, $300, or on sale for $150. You make an investment/purchase decision. 

LLY and NVO are great companies, but you have to look at how expensive they are. Quite expensive at around 50x earnings. Good growth rates. A reasonable multiple for a drug company is sub-20x, and these won't get there via discounted cashflow until next decade. That's a long way out.

He looks for things that have yet to be priced properly. He owns MRK.

Weight loss drugs go to a huge audience in the US. Have to take them for life. Helps indirectly with other conditions too. Lots of opportunity. Increased use means savings on health costs for government and insurance. Novo and LLY have an extensive lead on everyone else, which isn't going away. Yield is 1.5%.

A personal holding since 1995. Their weight-loss drug is the big news now. Remember that after this hype, we'll see if there are any long-term side effects (i.e. the stomach). It's an unproven drug, but could be fine. Meanwhile, they grow their dividend 12% annually. He took profits, because shares ran up so fast. Have the highest R&D to revenues among pharmas. A long-term hold.

Novo and Eli Lilly have both run up, but there's still more room to go, given the strong demand for their weight-loss drug. Insurers will probably pay for these drugs, because without them consumers couldn't afford them. Sure, others are developing their own drugs, but it's not easy. Pfizer just announced it's giving up.

Global leader. Recently became Europe's most valuable company by market cap. Diabetes and obesity drugs. Weight loss drug data showing positive cardiac effects as well. Raised guidance to 38% sales growth this year, with operating profit near 46% on the top end. Obesity treatment projected to move from 1M to 48M users by 2030.

Share price above its moving averages, beating S&P, 25% earnings growth rate forecast. Yield is 0.89%.

The largest company in Scandinavia. There is and will be lots of competition in weight-loss drugs. NVO has made a fortune through this drug, but their margins will shrink over time as competitors come. If you own this already, take profits, but don't expect NVO to double again.

Good job marketing Ozempic, taking the US and other countries by storm. Could be a $100B drug class for all participants. Significant weight loss, kidney and heart benefits. Always going to be side effects. Because of its runup, start with a 1/2 position, and then add on any weakness.

He strongly disagrees with some analysts who say that the new weight-loss drugs won't move the needles of their company stocks. He expects huge demand for these drugs to battle diabetes, which would prevent many other diseases. He sees a lot of runway ahead for LLY and Novo Nordisk.