If you had invested $10,000 in Novo Nordisk in 2018, this is how much you would have today

Investor looking at stocks on a tablet.

Novo Nordisk (NYSE: NVO) has become one of the hottest names in healthcare. Her diabetes drug Ozempic has become a household name and a trending topic on social media. People use the drug to lose weight and achieve amazing results. It was so disruptive that it even prompted businesses in other industries, such as snack foods, to answer questions about the possible impact Ozempic could have on their operations and growth prospects.

Understandably, this has made Novo Nordisk shares incredibly popular with investors. This year alone, its shares have risen by over 40%. How big would your profits have been if you had invested in the stock five years ago, before Ozempic changed the business game?

Where Novo Nordisk traded five years ago

On the first day of trading in December 2018, you could buy shares of Novo Nordisk for around $46. If you had invested $10,000 in stocks back then, you would have acquired approximately 217 shares.

Earlier this year, the healthcare company split its stock 2 for 1, which would have turned those 217 shares into 434 shares, each worth half — so the event won’t have a direct impact on the total value of your investment. However, stock splits and stock price reductions can help a company improve the liquidity of its stock. It can also make the stock look more attractive to retail investors.

Novo Nordisk shares are trading at around $95 today, so a stake of 434 shares would be worth approximately $41,230. This represents a 312% price increase. In comparison, an equal investment in S&P 500 it will cost about $16,800. Novo Nordisk, thanks to the growing popularity of Ozempic, has beaten the market for the past five years.

There can still be more growth

Although Novo Nordisk has performed well in recent years, it is still a stock with plenty of room to become more valuable in the future. Ozempic isn’t technically the company’s weight loss drug—it’s Wegovy, which has the same active ingredient, semaglutide, and which can be prescribed at a higher maximum dose. Patients simply used Ozempic off-label for this purpose because of its effectiveness.

Wegovy is still in the early stages of its implementation. In addition to the US, it is available in Denmark, Norway, Germany, the UK and Iceland. The company also plans to launch it in Japan by February. But Novo Nordisk has had to limit distribution in some markets as supplies of the drug remain limited relative to demand.

In the first nine months of the year, Wegovy generated sales totaling 21.7 billion Danish kroner ($3.1 billion) and accounting for 13% of the company’s total revenue. Wegovy’s sales are nearly 6x what they were at this time last year, but there’s still plenty of growth to come. The company plans to invest $6 billion to increase its manufacturing capacity, which should help ease supply constraints and pave the way for more revenue growth going forward for Wegovy and other drugs.

It’s not too late to invest in Novo Nordisk

Novo Nordisk’s shares have risen over the past five years, but there’s no reason to think they can’t continue to rise for the next five years. While the company has performed well, there is still plenty of potential for Novo Nordisk to become more valuable in the future, especially as Wegovy becomes a bigger name in slimming.

For long-term investors, now is as good a time as any to load up on shares of Novo Nordisk. The health giant still has a bright future ahead of it.

Should you invest $1,000 in Novo Nordisk right now?

Before you buy stock in Novo Nordisk, consider the following:

The Motley Fool Stock Advisor the analyst team has just identified who they think they are 10 best stocks for investors to buy now… and Novo Nordisk was not one of them. The 10 stocks that made the cut could deliver monster returns in the coming years.

Stock advisor provides investors with an easy-to-follow blueprint for success, including portfolio construction guidance, regular analyst updates, and two new stock picks each month. The Stock advisor the service has more than tripled the return of the S&P 500 since 2002*.

Check out the 10 stocks

*Stock Advisor goes back to December 11, 2023

David Jagielski has no position in any of the stocks mentioned. The Motley Fool recommends Novo Nordisk. The Motley Fool has a disclosure policy.

If You’d Invested $10,000 in Novo Nordisk in 2018, Here’s How Much You’d Have Today Originally Posted by The Motley Fool

Leave a Comment

Your email address will not be published. Required fields are marked *