Novo-Nordisk (NVO-N)

Fallen lately, great time to buy. Projected revenue of about $46B next year. Demand has always been there, it's the supply that's been challenged. Yield is 1%.

Changing how people think about dieting. So important because obesity causes a lot of other chronic issues. NVO and LLY are way ahead of everyone else. Own either one and do well over the next several years.

Ran too far, too fast. Has come down more in line with expectations. Pattern:  spends $$ on R&D, creates a blockbuster drug, stock runs up, comes back down to consolidate. He'd add around $100.

Ozempic is their major product and it has been on a wild ride. He is not a buyer of a company where the share price is inflated over one drug. Pipelines cannot be evaluated.

Bump in road on sales. Still 1.1x PEG. 27x forward PE, 25% growth rate. Pretty cheap for a growth name. Still a leader in obesity treatment and diabetes. Wegovy patent expiration not until 2032. Long-term technical trends remain intact.

Does not own shares in the company. Recent hiccups with production. Lots of competition in the markets. Very hard to differentiate. Would not recommend buying right now. 

Bit of concern over sales from Wegovy. Long-term aspects of this name speak to global demographic trends. Aging population, rising obesity rates. These same drugs are used to treat other conditions as well. Still sees 30% growth rate in the weight-loss-treatment industry, and 25% earnings growth rate from NVO. He'd add here.

He holds LLY as well, so he's doing OK ;)

He trimmed his position because drug companies can have a competitor make a patent announcement that takes 20% off their stock. He would buy a half position for new clients on a recent pullback.

All about GLP-1's, obesity drugs taking the world by storm. Population adoption still has a long way to go. Selling off because easy money's been made. But still upside if you have a long-term view. Not a rich valuation for growth profile. Durable lead. If you already hold, go long; if not, don't pile in now.

Leader in both diabetes and weight loss. Those sectors will continue to expand over time. Risks include possible health effects of these drugs, but he sees explosive growth in the meantime. Expected to post 25% earnings growth over the next few years. Trades at 35x PE. Value in this name, such strong growth. Very decent PEG ratio of 1.4x.

See his Top Picks.

They make Ozempic, the big weight-loss drug. Momentum remains strong and will continue. 30% of Americans are obese and another 30% are very overweight with similar numbers in Canada and China, so there's major room to grow. Them and Eli Lilly dominate this market.

Rebates hurt recent numbers. Scripts are still growing in the US. Lots of competition on weight loss, but the other guys are just in Phase 1 or 2. Obesity causes so many problems, so these drugs are just the beginning. Long runway. Yield is 1.5%.

He'd be cautious on it now, selling down as the position increased in a portfolio. Overhang is competitors coming in over next 3-5 years, and the dominant position today may not be so dominant.

Doesn't know them well enough nor their drug pipeline. Yes, their weight-loss drug has done well, but he doesn't own this or LLY. Their valuations have priced in the weight-loss drugs. He prefers Amgen, because their weight-loss drug is under trial and not priced into the stock yet. And it trades at a lower PE than these peers.

Now Europe's most-valuable listed company. Dominant position in growing diabetes and obesity treatment markets. Supplies half the world's insulin. Unprecedented growth. Seeing cardio, kidney and liver benefits from its drugs. Yield is 1%. 

Outpacing broader S&P 500. Technically, very strong. Aging population and rising obesity rates are tailwinds. Seeing ~25% EPS growth rate.

The market for weight-loss drugs is projected to be above $50 billion, but take this with a grain of salt. Every 5 years NVO develops a new drug, since they invest well in R&D, like drugs for type 2 diabetes and weight-loss. Expects further growth and would add shares at these levels.