$Novo Nordisk AS(NVO.US) is a good opportunity to add positions.
1. The sharp drop in UnitedHealth is indirectly good news for NVO. The high insurance payouts are likely due to high demand for drugs.
2. Why is NVO spending twice as much on advertising?
First, confidence in production capacity: The worst fear for a pharmaceutical company is "advertising brings patients, but there's no medicine to sell." NVO's willingness to spend $500 million on advertising strongly suggests they are resolving their supply chain bottlenecks. They wouldn't dare burn money like this if they couldn't produce the drugs.
Second, mindshare capture: NVO is trying to make "Ozempic/Wegovy" synonymous with weight-loss drugs (like "Coke" for carbonated drinks). This builds a brand moat, making it harder for Eli Lilly's Zepbound to compete.
Conclusion: This news is a plus for NVO's long-term stock price. It shows management's confidence in future sales. 🚀
Not investment advice 😎
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