Novo Nordisk: The most exciting pharma company in the world is misunderstood and its growth engine is ready to roar back to life

The diabetes and obesity medicine leader has fallen from grace due to investor over-excitement, the market is now misunderstanding one of the fastest growth profiles in the pharma space

Welcome to the 11th investment case and 10th resilience idea on Crack the Market (and the most comprehensive Novo Nordisk investment case you will find online)! Join me as I dissect one of the most innovative and important companies in the world, a leader in diabetes and obesity with one of the premier R&D engines and fastest growth in the pharmaceutical sector.

Twice a week, I will release deep dives into stocks and sectors that fit into the three themes that I see winning in this age of tariffs and deglobalization: resilience, sovereignty & reshoring, China. I will then deep dive into the opportunities in the AI data center value chain.

Take advantage of this once in a generation opportunity to build long term wealth by investing in great stocks that will deliver returns for your portfolio for years to come.

You can already read my first 10 deep dives, all of which I see as winners in this new world of tariffs and deglobalization:

• ASML (reshoring & China idea): The most innovative company in the world will 2.5x its EPS by 2030.

• LKQ (resilience idea): The most defensive business in the auto industry is a tariff winner and could become a compounder.

• Atlas Copco (resilience & reshoring idea): The best industrials business in the world is on sale, extremely resilient and will benefit from US reshoring.

• Badger Meter (resilience idea): The perfect business in the perfect end market, water meters are the definition of resilience.

• Knorr Bremse (resilience idea): Who knew making brakes was this lucrative? Rerating with self help story and upside from German infra plan.

• Flex (reshoring idea): The electronics manufacturing giant building Nvidia’s servers and enabling reshoring is becoming a better business.

• Itron (resilience & reshoring idea): Riding the grid investment super cycle and enabling smart grids.

• Roper (resilience idea): A resilient cashflow compounder in the software space with inflecting growth.

• RELX (resilience idea): The company to own forever – one of the very best businesses on Earth.

• CPKC (resilience & reshoring idea): The rail connecting Canada/US/Mexico and benefiting from reshoring

After reading this article, you will understand why this company is so special thanks to its world beating drug pipeline in the obesity/diabetes care space, why the company is poised to see best in class growth and excellent execution from a talented management team, why its target market is growing significantly and presents upside with future applications of its medicines, why the company has derated so much recently and why it may be poised for a turnaround.

In this article I go through:

1. Novo Nordisk’s business and how it dominates the fast growing diabetes and obesity care market.

2. How the company has transformed into one of the best known, fastest growing and most attractive pharmaceutical companies in the last few years.

3. How the company’s R&D pipeline remains world leading and provides a decade+ of revenue and earnings growth with potential new markets that could expand its TAM.

4. How its focused capacity expansion, world class R&D productivity and deep network of partnerships positions Novo for long term growth and significant capital return to shareholders.

5. Why its valuation discounts a worst case scenario.

Novo Nordisk Investment Case