Amgen Inc. (0R0T.L)

What To Watch: Novo Nordisk

Novo Nordisk (NVO), the Danish drugmaker behind Ozempic & Wegovy has become a household name and one of Europe's most valuable companies. What To Watch focuses in on three key issues as Novo Nordisk reports 4th quarter earnings on January 25th: 1. Expansion: 3rd quarter results were music to investors ears with a 29% jump in sales to 8.4 billion dollars. The unprecedented off label sales of its diabetes drug Ozempic started a stampeded to keep up with demand & a global surge in counterfeits. Novo’s deal is worth up to 1 billion dollars with U.S. biotech startups and plans for expanding capacity will be watched with interest. 2. Competitors: Eli Lilly (LLY) is in hot pursuit though diabetes drug Mounjaro and with obesity drug Zepbound after FDA approval in November. Lilly also started a new website to connect patients seeking treatment with Telehealth providers. Then there is Pfizer (PFE), Amgen (AMGN), Roche (RHHBY), & Astra Zeneca (AZN) all fighting for a piece of the pie. The battle is on for a share of the market that could be worth 100 billion dollars by the end of the decade. 3. Barriers: There are many hurdles for Novo Nordisk. For one, Medicare does not cover weight loss drugs & Novo has been lobbying Congress to release these restrictions. Some insurers are hesitant to cover or have strict prior authorization rules in place. Can Novo keep as much supply as Eli Lilly ramps up their production capacity? Lots to digest as we wait to see how one of the biggest stories in business news develops.