Novo’s share in global diabetes care market
In global diabetes care, Novo Nordisk (NVO) leads the market with 27% share in terms of value. Read How Is Novo Nordisk’s Position in the Diabetes Segment? for more information.
The diabetes pandemic will likely continue to drive Novo’s sales growth. As per the International Diabetes Federation, 642 million people will have diabetes by 2040 against 415 million people suffering from the disease in 2015. We’ll discuss Novo’s insulin portfolio in detail in the next article.
In the diabetes space, Novo shares the market with Sanofi (SNY), Eli Lilly (LLY), and Merck (MRK). Sanofi’s Toujeo and Lantus and Eli Lilly’s Basaglar pose strong competition to Novo’s diabetes portfolio.
How will Novo protect its dominance in the diabetes space?
As a result of increased payer demand, Novo has updated its R&D (research and development) strategy. To raise the innovation bar, the company plans to work on actively differentiated molecules. As a result, it decided to drop the oral insulin development program. Perhaps the risk-reward ratio for development doesn’t justify any further development.
During the third quarter, Novo filed a supplemental application for Tresiba’s label update. Novo is conducting various trials for oral Semaglutide. Its leadership position in the diabetes area is protected through multiple patents for its key drugs as well as its value chain setup. Novo’s Xultophy has patent protection until 2029 while Tresiba is protected until 2028 in Europe and 2029 in the US. Victoza’s patent in Europe will expire in 2023 in the US and Europe.
To avoid the direct risk of investing in Novo, you can look for options such as the Vanguard FTSE All-World ex-US ETF (VEU). The fund holds ~0.33% in Novo Nordisk.