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Wegovy’s power to shrink waistlines has led to it being called a wonder drug. The therapy can help patients lose about 15 per cent of their body weight. That should improve their long-term health and save society massive healthcare costs. Over 2.5 billion people are classed as overweight or clinically obese globally.
The Danish pharmaceutical company responsible, Novo Nordisk, was previously best known for making insulin, human growth hormone therapies and treatments for haemophilia. It originally developed Wegovy’s active ingredient as a diabetes medication. A recent study indicates it can also reduce the risk of heart attacks and strokes. Data additionally suggests it could benefit patients with chronic kidney disease, and there are trials to see if it could treat Alzheimer’s and a liver condition.
SAINTS first invested in Novo Nordisk in 2016, and we’ve been compounding our knowledge of its operations ever since. When the stock underperformed, work by our team’s investigative researcher into the firm’s culture reassured us of its quality and capacity for further breakthroughs. And my own conversations with management and engineers have led me to appreciate its manufacturing edge. In 2023, it became Europe’s most valuable company.
Looking ahead, the potential to use Wegovy as a springboard to create even better anti-obesity treatments, combined with the firm’s impressive track record for innovation, suggests that Novo Nordisk can maintain its competitive advantage.
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