This was the emphatic message from Lars Freuergarad Jorgensen, the Chief Executive of Novo Nordisk, when he presented at the company’s Capital Markets Day in Denmark last week, which your author attended. Mr. Jorgensen was referring to the global battle with diabetes and obesity. He cited disturbing data from a recent Lancet publication which showed that over 1bn people worldwide are now obese, greater than the number suffering from malnutrition.
Most shockingly, just 2% of those with obesity are currently treated, per Novo. As the world’s largest manufacturer of drugs for managing diabetes and obesity, Novo is well-positioned to move the debate “beyond weight.” For Novo, the company’s key focus and corresponding drug development pipeline, is centred on “achieving outcomes” and “allowing people to live healthier, longer lives.”
The 150+ attendees at Novo’s HQ – where the atrium is shaped like an insulin molecule – learned about the damaging impact of diabetes and obesity as well as Novo’s solutions for managing these challenges. A typical type-2 (lifestyle-induced) diabetes sufferer can expect to have a life expectancy eight years shorter than that of someone without the illness. 30% of those living with diabetes are likely to suffer from cardiovascular diseases and 40% from chronic kidney disease. Just 15% of people with diabetes are “in control” of the illness.The numbers are even more concerning for obesity. Of those currently being treated by Novo, 78% suffer from at least one other co-morbidity (or related illness), 53% from two and 37% from three (all data courtesy of Novo).
No surprise then that “there is a significant unmet need.” Novo’s drugs currently reach just 1m obesity sufferers today. Increasing drug production on the part of Novo linked with more health authorities providing access are helping to change this paradigm. Production of Ozempic insulin pens have tripled in the last two years. Meanwhile, Novo’s capital expenditure plans on new facilities are likely to double again between 2023 and 2024, just as in the prior 2022-2023 period. Wegovy, Novo’s latest obesity drug, is currently available in nine countries, but more should follow. Ultimately, Novo’s goal is to offer “more life, more health” to people globally. We expect this future trend to keep running.
—
Originally Posted March 12, 2024 – “The job is far from done”
The above does not constitute investment advice and is the sole opinion of the author at the time of publication. Heptagon Capital is an investor in Novo Nordisk. The author of this piece has no personal direct investment in the business. Past performance is no guide to future performance and the value of investments and income from them can fall as well as rise.
Disclosure: Heptagon Capital
The document is provided for information purposes only and does not constitute investment advice or any recommendation to buy, or sell or otherwise transact in any investments. The document is not intended to be construed as investment research. The contents of this document are based upon sources of information which Heptagon Capital believes to be reliable. However, except to the extent required by applicable law or regulations, no guarantee, warranty or representation (express or implied) is given as to the accuracy or completeness of this document or its contents and, Heptagon Capital, its affiliate companies and its members, officers, employees, agents and advisors do not accept any liability or responsibility in respect of the information or any views expressed herein. Opinions expressed whether in general or in both on the performance of individual investments and in a wider economic context represent the views of the contributor at the time of preparation. Where this document provides forward-looking statements which are based on relevant reports, current opinions, expectations and projections, actual results could differ materially from those anticipated in such statements. All opinions and estimates included in the document are subject to change without notice and Heptagon Capital is under no obligation to update or revise information contained in the document. Furthermore, Heptagon Capital disclaims any liability for any loss, damage, costs or expenses (including direct, indirect, special and consequential) howsoever arising which any person may suffer or incur as a result of viewing or utilising any information included in this document.
The document is protected by copyright. The use of any trademarks and logos displayed in the document without Heptagon Capital’s prior written consent is strictly prohibited. Information in the document must not be published or redistributed without Heptagon Capital’s prior written consent.
Heptagon Capital LLP, 63 Brook Street, Mayfair, London W1K 4HS
tel +44 20 7070 1800
fax +44 20 7070 1881
email london@heptagon-capital.com
Partnership No: OC307355 Registered in England and Wales Authorised & Regulated by the Financial Conduct Authority
Disclosure: Interactive Brokers
Information posted on IBKR Campus that is provided by third-parties does NOT constitute a recommendation that you should contract for the services of that third party. Third-party participants who contribute to IBKR Campus are independent of Interactive Brokers and Interactive Brokers does not make any representations or warranties concerning the services offered, their past or future performance, or the accuracy of the information provided by the third party. Past performance is no guarantee of future results.
This material is from Heptagon Capital and is being posted with its permission. The views expressed in this material are solely those of the author and/or Heptagon Capital and Interactive Brokers is not endorsing or recommending any investment or trading discussed in the material. This material is not and should not be construed as an offer to buy or sell any security. It should not be construed as research or investment advice or a recommendation to buy, sell or hold any security or commodity. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.
Join The Conversation
If you have a general question, it may already be covered in our FAQs. If you have an account-specific question or concern, please reach out to Client Services.