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Novo Nordisk Is Focusing on These Strategic Areas in 2016

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Four strategic areas

Novo Nordisk (NVO) plans to use the following core competencies to boost its profitability in 2016:

  • deep knowledge of diseases
  • expertise in developing protein-based treatments
  • protein manufacturing expertise
  • capability to launch new products
  • leadership position in emerging economies
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Diabetes and obesity

With 642 million people expected to suffer from diabetes globally by 2040, the disease is expected to offer multiple growth opportunities for Novo Nordisk and peers such as GlaxoSmithKline (GSK), Sanofi (SNY), and Eli Lilly (LLY). Since obesity is a major factor leading to diabetes, Novo Nordisk anticipates a rise in the overall obese population by 2040.

On December 23, 2014, the FDA (US Food and Drug Administration) approved Saxenda, Novo Nordisk’s injectable drug, for chronic weight management. NVO is also involved in developing new drugs to capitalize on the opportunity in the obesity segment.

Hemophilia segment

While Novo Nordisk has significant market share in the segment of hemophilia patients with inhibitors due to its drug NovoSeven, the company has been actively pursuing opportunities in the broader hemophilia A and hemophilia B markets with drugs like NovoEight and Tretten.

While the overall hemophilia market is not growing, Novo Nordisk has continued to expand its addressable market in the hemophilia space with new product launches.

Growth disorders

Novo Nordisk continues to be a market leader in growth disorders. To know more about Novo Nordisk’s growth disorders business, please refer to “Novo Nordisk Expands Leadership in Growth Disorders.”

Notably, the PowerShares International Dividend Achievers Portfolio (PID) has about 1.0% of its total portfolio holdings in NVO.

In the next part, we’ll explore drivers of Novo Nordisk’s double-digit growth in diabetes care.

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