NOVO NORDISK

Analysis of Novo Nordisk share price

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Are you planning to buy Novo Nordisk shares or trade in its share price in the not too distant future? In this case we recommend you first learn about all the factors that could assist you in implementing an effective and pertinent analysis for this asset. In this article you will find information and explanations on the exact activities of this company, its principal competitors on this market and recent partnerships as well as its advantages and disadvantages. We will also explain how to implement a comprehensive fundamental analysis of this asset with the indicators you should follow in the news and events.

Elements that can influence the price of this asset:

Analysis N°1

We would particularly monitor the increase in diabetes as well as other chronic illnesses notably due to urbanisation and the increase in the average human life span.

Analysis N°2

The growth in the biosimilars market should also be carefully monitored as it could represent growth opportunities for this company.

Analysis N°3

Any significant changes in the health and wellbeing sectors are also factors that should be carefully followed.

Analysis N°4

We would also closely follow the rise in public debt of the European countries that could weigh heavily upon the refund reforms of certain health divisions and therefore influence the activities of the Novo Nordisk Company.

Analysis N°5

Any changes to the health and safety regulations and standards fixed and implemented by the governments could also exert a significant influence on the growth of this company’s activities.

Analysis N°6

Finally, we would of course also carefully monitor the direct competitors of Novo Nordisk as well as any partnerships that this group implements, sometimes with certain adversaries.

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General presentation of Novo Nordisk

Still with the objective of increasing your knowledge about Novo Nordisk we will now present information about this company with details pertaining to its activities and sources of revenue that will assist you in better understanding the challenges it faces and its possibilities for growth.

Novo Nordisk is a Danish company specialised in the creation, production and sale of pharmaceutical products. To better understand its activities we can divide them into a number of sectors according to the turnover they generate and how they do so:

  • The production and sale of treatment products for diabetes and obesity that represent the majority of the group’s income and generate nearly 84.3% of its turnover.
  • In second position we find the activities related to haemophilia treatment products that generate 8.4% of the group’s turnover, notably with the protein injections.
  • Then we have the production and sale of growth hormones representing 6% of the turnover of this company which are destined for children that require growth deficiency treatment.
  • And finally we find the hormonal substitute products including those for menopause and osteoporosis prevention that represent 1.3% of the company’s turnover.

It can also be advantageous to know the geographical distribution of this company’s income. In fact, 19.1% of its revenue is currently generated in Europe, 47.1% in the United States, 2.5% in North America, 11.5% in Africa, the Middle East and Oceania,  10.5% in China, 5.3% in Japan and Korea and 4% in Latin America.

Analysis of Novo Nordisk share price
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The major competitors of Novo Nordisk

We shall now pass on to a study of the Novo Nordisk Company relating to its principal competitors on the market.  Here are details on the major direct competitors to the Eli Lilly Group, four in number at present:

Eli Lilly 

This is an American pharmaceutical group that holds tenth position worldwide in terms of turnover.  Based in Indianapolis, Indiana, this company was created in 1876 by the Colonel Eli Lilly, a pharmacist and veteran of the war of succession who died in 1898. The Eli Lilly Group currently employs more than 33,600 people around the world in 143 countries. The group owns numerous production sites the largest of which are in France.

Astrazeneca 

This is another pharmaceutical group created through the merger of the Swedish company Astra and the British company Zeneca in 1999. The group currently employs approximately 63,000 people around the world and exercises its activities in the sectors of research, development, production and sale of pharmaceutical products as well as the provision of services for medical care.  Astrazeneca is particularly specialised in certain therapeutic sectors including diabetes, anaesthesiology, cardiology, infectious diseases, gastroenterology, oncology, neurology and pneumology.

Biocon

Another serious contender to Novo Nordisk is the Biocon Company which is an Indian biotechnology company based in Bangalore. It is notably specialised in the sectors of enzymes, oncology, and the production of insulin.         

Abbott 

Finally, the last direct major competitor to Novo Nordisk is the American company Abbott Laboratories, a pharmaceutical company based in Chicago which currently employs nearly 90,000 employees worldwide.


The major partners of Novo Nordisk

Of course, the Novo Nordisk Group does not only have adversaries, it also has a number of allies such as the following two examples of partnerships that the company recently signed:

Innate Pharma

Firstly, in 2006 Novo Nordisk signed a partnership agreement with Innate Pharma for the research and development of medicinal products targeting the Natural Killer cells.

Remynd

In 2017 Novo Nordisk allied itself with the Belgian company Remynd in a license agreement for the development of a major therapeutic treatment related to diabetes.

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The factors in favour of a rise in the Novo Nordisk share price:

Before deciding which strategy to adopt for Novo Nordisk shares read the following information on the advantages and disadvantages of this company.

We shall start with the advantages of this group with the following examples:

  • Firstly, the group benefits from a profound knowledge of diabetes and over time the company has become a specialist in this illness.
  • Another advantage of this group relates to its significant cash flow that can be used to achieve acquisitions, spread throughout the world and undertake further research and development.
  • The international position of the group is also one of its major strengths as it is present in 190 different countries.
The factors in favour of a drop in the Novo Nordisk share price:

Let us now pass on to the disadvantages of this asset and detail a few weak points of this company:

  • Firstly, the Novo Nordisk Company has been targeted by critics following its inability to supply information relating to the side effects of Victoza which tarnishes the brand’s image.
  • Finally, other legal actions in the past that the group has experienced continue to blemish this brand’s reputation and negatively influence this group’s activities.
The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions.

Frequently Asked Questions

How to anticipate movements in the Novo Nordisk share price?

To anticipate the future movements in the share price of Novo Nordisk it is best to complete several types of analyses. In fact you will need to create both a technical analysis based on a study of the historical charts with trend and volatility indicators and a fundamental analysis which will take into account the exterior factors that could exert an influence on this share price.

Where and how to complete a financial analysis of Novo Nordisk?

A financial analysis is also one of the analyses that you should complete before speculating on the Novo Nordisk share price. To complete this analysis you will of course need to have a thorough knowledge of its annual and quarterly financial results that you can find on this company’s official website and compare them to those predicted by the analysts and the market. To do so you can use the financial ratios to determine the true value of this group and its possibilities for growth on the market.

How to invest in the Novo Nordisk share price?

If you are interested in Novo Nordisk shares and wish to invest in these assets then several different possibilities are open to you.  You can choose to buy these shares outright and add them to your portfolio of assets or you can opt for trading in them online through a trading platform specialised in CFDs.  

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