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Here's How Much a $1000 Investment in Novo Nordisk Made 10 Years Ago Would Be Worth Today

Zacks Equity Research
·4-min read

For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.

Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.

What if you'd invested in Novo Nordisk (NVO) ten years ago? It may not have been easy to hold on to NVO for all that time, but if you did, how much would your investment be worth today?

Novo Nordisk's Business In-Depth

With that in mind, let's take a look at Novo Nordisk's main business drivers.

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Bagsværd, Denmark-based Novo Nordisk is a global healthcare company and a leader in the worldwide diabetes market with a full portfolio of GLP-1 receptor agonists, modern insulins and human insulins. The company is also a key player in hemophilia care, growth hormone therapy, hormone replacement therapy and obesity.

Novo Nordisk operates through two segments: Diabetes and obesity care and Rare diseases. While the Diabetes and obesity care segment covers insulins, glucagon-like peptide 1 (GLP-1), other protein-related products, obesity and oral anti-diabetic drugs, the Rare diseases segment includes hemophilia, growth hormone therapy and hormone replacement therapy.

Novo Nordisk’s most well-known drugs include Levemir, NovoRapid, Victoza, Ozempic, NovoMix, NovoSeven, NovoThirteen, Ryzodeg, Xultophy, Saxenda, Rybelsus, Esperoct, Sogroya and Norditropin, among several others. The company launched its first product for weight management, Saxenda, in the United States in 2015.

Wegovy, Novo Nordisk’s other obesity care product, was approved by the FDA in June 2021, following which it faced supply issues in the United States, which led to a decline in sales upon launch. However, the issue was resolved by Novo Nordisk, making all dose strengths of Wegovy available in the United States in December 2022. The company is also looking to expand the drug’s indication as an adjunctive treatment for the prevention of major adverse cardiovascular events (MACEs) in adults over a period of up to five years, as well as in the treatment of heart failure and obesity.

In October 2022, Novo Nordisk acquired Forma Therapeutics for $1.1 billion. Forma Therapeutics is a company focused on providing innovative treatment to transform the lives of patients suffering from sickle cell disease (SCD) and rare blood disorders. The acquisition of the company along with Forma’s lead development candidate, etavopivat, complements Novo Nordisk’s vision to accelerate its scientific presence and pipeline in hemoglobinopathies.

Novo Nordisk generated revenues of DKK 177 billion in 2022 compared with DKK 141 billion in 2021. Revenues increased by 26% in Danish kroner and 16% at the currency exchange rate.

Bottom Line

Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Novo Nordisk a decade ago, you're probably feeling pretty good about your investment today.

A $1000 investment made in January 2014 would be worth $5,673.69, or a gain of 467.37%, as of January 31, 2024, according to our calculations. This return excludes dividends but includes price appreciation.

In comparison, the S&P 500 gained 174.50% and the price of gold went up 57.04% over the same time frame.

Going forward, analysts are expecting more upside for NVO.

Novo Nordisk has one of the broadest diabetes portfolios in the industry. Ozempic and Rybelsus have been performing well in the diabetes market. Obesity drug Wegovy has been enjoying increasing demand. Label expansions of these drugs in cardiovascular and other indications will likely boost sales. To tackle the supply constraints of Wegovy in international markets, Novo announced initiating a €2.1 billion project to expand its current manufacturing facility in Chartres, France. Its diversifying efforts to develop new treatments are encouraging. The company recently announced positive results from its late-stage diabetes study of IcoSema, witnessing superiority over insulins glargine U100 and aspart. Despite intense rivalry in the obesity care market, Novo Nordisk has been maintaining its market share. Its shares have outperformed the industry in the past year.

The stock is up 6.77% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 4 higher, for fiscal 2023. The consensus estimate has moved up as well.

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Zacks Investment Research