Novo Nordisk (NYSE:NVO) stock rose on news that China has Wegovy and that the drugmaker will invest into expanding its U.S. production capacity.
The expansion will be built and is part of a $11 billion global production push.
Novo Nordisk, which is based in Denmark but trades in New York with the NVO stock ticker, rose 2% overnight to $145 per share.
The Tesla of Pharma
Novo Nordisk pioneered Glucagon-Like Peptide 1 (GLP-1) agonists, generally taken by injection. Its semaglutide was . Wegovy was approved for weight loss .
The drugs have transformed Novo Nordisk, based in the small Danish town of , 60 miles west of Copenhagen. They have also utterly changed the weight loss industry. The old diet-and-exercise market leader, WW International (NASDAQ:WW), formerly Weight Watchers, is now a penny stock.
When Ozempic was first approved, Novo Nordisk was trading at about $26 per share. It is now most valuable company by market capitalization. It’s well ahead of the Netherlands’ ASML (NASDAQ:ASML), which makes semiconductor production equipment. Novo is also than the next most valuable Danish company.
While Novo Nordisk is the in the U.S. with FDA-approved products containing semaglutide, there are many competing for the growing market. The leader among the rest is Eli Lilly (NYSE:LLY), whose GLP-1 drug, tirzepatide, is sold as .
The GLP-1 market was worth $57 million in 2018 but $5.7 billion in 2022. It is expected to be a $133 billion market worldwide .
NVO Stock: What Happens Next?
Novo Nordisk and Eli Lilly are expected to control 80% of the GLP-1 market through the decade. Novo’s patent on Ozempic won’t expire .
On the date of publication, Dana Blankenhorn did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
