Novo Nordisk (NVO), a global pharmaceutical giant, has experienced a remarkable ascent in its market capitalization, propelled by the success of its groundbreaking medication semaglutide.
The rise of Ozempic (semaglutide), a once-weekly injectable treatment for type 2 diabetes, has not only solidified Novo Nordisk’s position as a leader in diabetes care but has also contributed significantly to the company’s overall growth and success.
Once the FDA approved semaglutide for weight loss on June 4th, 2001 through their medication, Wegovy, Novo Nordisk’s the stock price rose considerably in 2021, 2022 and 2023. While other stocks related to bariatric surgery and junk food sank. This infographic shows how quickly Novo Nordisk’s stock price rose compared with bariatric surgery and food companies.
The rise of Novo Nordisk was fueled by the sheer market opportunity of a new class of drugs – where millions of individuals are obese worldwide could be treated. Meanwhile, news stories and social media posts continued to educate the public about the new weight loss option. As wall street learned of the financial performance of Novo Nordisk the stock seemed to defy gravity.
From January 1st 2020 to December 31st 2023 – Novo Nordisk’s stock rose an astonishing 300%. Bariatric surgery companies rose marginally over the four-year period, while food processing companies rose roughly 20% during the same four-year period.
About Semaglutide
Semaglutide belongs to a class of medications known as glucagon-like peptide-1 (GLP-1) receptor agonists. Initially approved for the treatment of type 2 diabetes, semaglutide has demonstrated its efficacy in promoting weight loss during clinical trials. The medication is administered through a subcutaneous injection and works by mimicking the effects of natural GLP-1 hormones, which regulate blood sugar levels and appetite.
Although semaglutide has been shown to reduce weight in a majority of patients, there are considerable drawbacks of semaglutide compared with bariatric surgery. Patients considering semaglutide or other weight loss injections should consider the costs of medicine, long-term results, side effects, and how to keep weight off after discontinuing with the medication.
Novo Nordisk’s Semagultide vs Bariatric Surgery
We complied the stock prices and relative stock performance of a basket of stocks related to bariatric surgery. Stocks include the surgical manufacturers included the average price of Johnson & Johnson, Medtronic, Olympus, Boston Scientific, Asensus Surgical, ConMed, Intuitive Surgical, Apollo Endosurgery and ReShape Lifesciences.
Novo Nordisk’s Semagultide vs Junk Food
We complied the stock prices and relative stock performance of several stocks related to junk or processed food companies. Processed food corporations included the average price of PepsiCo, Nestlé, Kraft Heinz, General Mills, Mondelez, Kellogg, Conagra, Campbell Soup and J.M. Smucker.
Methodology:
Adjusted stock prices gathered from January 1, 2020 to December 31, 2023. Surgery manufacturers included the average price of Johnson & Johnson, Medtronic, Olympus, Boston Scientific, Asensus Surgical, ConMed, Intuitive Surgical, Apollo Endosurgery and ReShape Lifesciences. Processed food corporations included the average price of PepsiCo, Nestlé, Kraft Heinz, General Mills, Mondelez, Kellogg, Conagra, Campbell Soup and J.M. Smucker.
Source: Yahoo Finance, Google Trends
