Wessel Vleut @WesselV: "Why I'm Betting on Novo..."

Netherlands

Why I'm Betting on Novo Nordisk – Cheap Now, Strong for the Future Novo Nordisk has recently been under pressure. Its growth slowed, and it faces legal challenges around semaglutide drugs (Wegovy for weight loss and Ozempic for diabetes). Compound pharmacies rushed to supply unapproved versions during shortages, prompting Novo to file at least 14 new lawsuits in the US to combat counterfeit “semaglutide” claims that misrepresent and potentially endanger patients. This effort builds on more than 111 lawsuits already filed across 32 states (reuters.com, njbiz.com). The semaglutide shortage has officially been declared over by the FDA, supported by a federal court ruling blocking further unfounded compounding of these drugs (prnewswire.com, njbiz.com). Novo is actively protecting its products and reinforcing trust in its supply chain. Valuation wise, Novo Nordisk looks especially appealing. Its current trailing P/E ratio is approximately 13.3×, and the forward P/E is around 12.5×, both well below its historical average of ~25× (stockanalysis.com, gurufocus.com, ycharts.com). That makes it a relatively low risk bet with solid upside potential, especially for a well run company of this calibre. However, there are macro risks. Trump has threatened tariffs on pharmaceuticals, potentially hiking them to 150% within 18 months and even up to 250%, putting pressure on European exporters like Novo (reuters.com, theguardian.com). This geopolitical risk is real, but given Novo’s pricing power and strong management, it is a risk worth taking when valuations are low. In summary: despite short term turbulence, Novo Nordisk remains financially robust with a high quality management team, a now secured supply of key drugs, and ongoing global demand for its GLP-1 therapies. The current dip looks like a temporary scare, not a long term setback. With a low valuation and legal clarity, this is a stock with real rebound potential. $NOVO-B.CO (Novo Nordisk B A/S) $NVO (Novo-Nordisk A/S SPONS ADR) $HIMS (Hims & Hers Health Inc) $LLY (Eli Lilly & Co) $SPY (State Street SPDR S&P 500 ETF) $TRUMP

Not investment advice. The author may have financial interests in the mentioned instruments.