Unlike artificial intelligence (AI) where the profit potential is still very much unknown for many companies, the money-making potential of weight-loss drugs is there for all to see. Danish company Novo Nordisk’s (DK:NOVO.B) dominance of this market has a lot of attractions, but has its share price run up too far, too fast?
Dominant force tackling the obesity crisis
Not so long ago, Novo Nordisk looked as though it had run out of growth. Its leading position supplying insulin to treat diabetes had created great profits, but a maturing and commoditised end market for the product saw its profits and share price largely treading water.