Discover Novo Nordisk a portfolio company in the European Focus Fund!
Like many of the companies in the European Focus Fund, Novo Nordisk has been one of Christian’s core holdings for the better part since 2004. Novo Nordisk is an old business; the company was founded in 1923 and it has thus stood the test of time given an unprecedented focus on its core competence, insulin.
In our opinion, Novo Nordisk is an outstanding company. It is the world’s largest manufacturer and supplier of insulin. The company holds a global market share of some 50% in the insulin industry with the #2 and #3 competitors, Eli Lilly and Sanofi, controlling an additional estimated joint share of 30-35% between the two of them. Hence, such industry concentration should ensure R&D leadership, distribution dominance and pricing power for many years to come.
For us, what makes Novo Nordisk and the diabetes industry so spectacular from an investment perspective are several factors. Not only is the industry concentration with the top-three players quite unique, but due life-style changes, such as increased affluence and more desk-bound jobs, diabetes care grows by some 5-7% annually.
In addition, through experience we have found that very few companies control and drive their industries, but Novo Nordisk is one of them. As the leading player in its field, Novo Nordisk leads the development of new products, such as in the field of GLP-1 and more recently in anti-obesity where a causal relationship with diabetes has been established. Novo Nordisk holds the first-mover advantage in this field and the company is lobbying governments and healthcare authorities to get obesity classified as an illness. In short, by preventing obesity through weight-loss, diabetes and secondary more serious illnesses, such as renal care and later-stage amputations, can be avoided. The net effect is that by spending more on better diabetes drugs, society is able to generate longer-term healthcare savings.
For more information about the European Focus Fund and its other holding, click here.
This is provided for information purposes only and does not constitute investment advice or any recommendation to buy, or sell or otherwise transact in any investments. This is not intended to be construed as investment research. Past performance is no guide to future performance and the value of investments and income from them can fall as well as rise.
Disclaimers
The document is provided for information purposes only and does not constitute investment advice or any recommendation to buy, or sell or otherwise transact in any investments. The document is not intended to be construed as investment research. The contents of this document are based upon sources of information which Heptagon Capital LLP believes to be reliable. However, except to the extent required by applicable law or regulations, no guarantee, warranty or representation (express or implied) is given as to the accuracy or completeness of this document or its contents and, Heptagon Capital LLP, its affiliate companies and its members, officers, employees, agents and advisors do not accept any liability or responsibility in respect of the information or any views expressed herein. Opinions expressed whether in general or in both on the performance of individual investments and in a wider economic context represent the views of the contributor at the time of preparation. Where this document provides forward-looking statements which are based on relevant reports, current opinions, expectations and projections, actual results could differ materially from those anticipated in such statements. All opinions and estimates included in the document are subject to change without notice and Heptagon Capital LLP is under no obligation to update or revise information contained in the document. Furthermore, Heptagon Capital LLP disclaims any liability for any loss, damage, costs or expenses (including direct, indirect, special and consequential) howsoever arising which any person may suffer or incur as a result of viewing or utilising any information included in this document.
The document is protected by copyright. The use of any trademarks and logos displayed in the document without Heptagon Capital LLP’s prior written consent is strictly prohibited. Information in the document must not be published or redistributed without Heptagon Capital LLP’s prior written consent.
Heptagon Capital LLP, 63 Brook Street, Mayfair, London W1K 4HS
tel +44 20 7070 1800
email [email protected]
Partnership No: OC307355 Registered in England and Wales Authorised & Regulated by the Financial Conduct Authority
Heptagon Capital Limited is licenced to conduct investment services by the Malta Financial Services Authority.