The Ozempic Craze – If You Invested Years Ago, How Much Would Your Investment Be Worth Now?

Novo Nordisk (NVO 0.28%) is a leading brand in the healthcare industry. Its diabetic treatment, Ozempic, is now a well-known and hot social media issue. Individuals taking the medication to aid with weight loss are seeing amazing results. 

Because of its unusual nature, companies in other sectors of the economy, including the food industry, are also being asked to respond to questions about the potential effects Ozempic could have on their business activities and future growth. 

This makes sense as to why investors like Novo Nordisk stock so much. Its shares have risen more than 40% only this year. If you had bought the shares five years earlier before Ozempic changed the game for the company, how much would you have gained?

Where had Novo Nordisk been Trading Five Years Ago?

On December 1, 2018, the opening price for Novo Nordisk shares was about $46. At the time, a $10,000 investment in the stock would have acquired about 217 shares. The healthcare firm divided its shares 2-for-1 earlier this year, resulting in 434, individually valued at half as much as the original 217 shares. 

Hence, the result does not impact the overall value of your investing money. Nonetheless, dividing up shares and lowering their price might assist a business in increasing the liquidity of its stock. Retail investors may find the stock more appealing as a result.

The current price of Novo Nordisk shares at about $128, so 434 would be worth about $55,552. In contrast, the same money invested in the S&P 500 could yield a value of almost $16,800. Over the last five years, Novo Nordisk has led the market because a massive population appreciates Ozempic.

Given Wegovy’s potential for expansion in the United States and even the United Kingdom, Novo Nordisk may have a successful period in 2023. The firm’s sales increased by 26% in 2022, and sales of obesity care increased by 101%. Even though Novo is trading close to its 52-week high and has a (P/E) ratio of more than 40, Wegovy and Ozempic may be able to make growth in sales for the healthcare industry in the years to come, making Novo well worth the premium.

Is it Currently a Good Time to Invest $1,000 in Novo Nordisk?

Before buying Novo Nordisk shares, consider this:

The team of experts at Stock Advisor has excluded Novo Nordisk from their list of the 10 best stocks for investors. The ten stocks that made the final list might see huge returns in the future. If you were to invest $1,000 when we recommended it, you would have $582,083 because Nvidia established this group of assets on April 15, 2005!

The Bottom Line!

Even though Novo Nordisk has had incredible success with Ozempic, investors must evaluate various guidelines before investing. Despite the increasing share prices and growth possibilities, you must understand all the risks associated with the short and long term. There is no magic pill for losing weight and being healthy, so as much as everyone wants that, the reality is that it takes discipline, hard work and lifestyle changes. The US market is very attractive for the growth opportunities but it is also very litigious so there could be a lot of known and unknown risks with these products and the company and their competitors.