With the obesity market gaining popularity, analysts are expecting sales to increase. Pharma companies are rushing to enter the market
Passive income investors know that when there's a business that's proven to throw off a lot of cash consistently over time, it might be a good idea to hold its shares to capture safe and reliable dividends for the long haul. Novo Nordisk (NYSE: NVO) is an obvious candidate to consider right now. Thanks to its blockbuster drug Ozempic and a pipeline that's chock-full of other potential winners, Novo Nordisk seems to have most of the makings of a great dividend stock.
Ozempic, a diabetes treatment that celebrities take to lose weight, and Wegovy, an anti-obesity medication, have propelled Novo Nordisk to become Europe’s most valuable company and single-handedly stopped Denmark from falling into recession. At $410bn, Novo Nordisk’s market capitalisation is now larger than Denmark’s annual GDP of $400bn last year, raising concerns among officials and business figures that the country’s fortunes have become too closely tied to a single company. “The way that we look at it is that in Denmark we have a two-speed economy: the pharmaceutical industry — and the rest,” said Thomas Harr, chief economist at Denmark’s central bank.