5 Most Valuable Nordic Companies in the World

1. Novo Nordisk A/S (NYSE:NVO)

Market Capitalization: $221.864B

Country of Origin: Denmark

The Danish multinational company lands the first position on our list of the 15 most valuable Nordic companies in the world. As a leading pharmaceutical company, Novo Nordisk (NYSE: NVO) has seen tremendous growth in the last year, with its market cap rising from $163.07B in 2020 to $221.86B in 2021. Novo Nordisk (NYSE: NVO) is working towards creating novel treatments for chronic diseases affecting millions around the world. Novo Nordisk (NYSE: NVO) is responsible for the production of 50% of the world’s insulin supply and conducts clinical trials in over 50 countries.

LRT Capital Management, an investment management firm, published its third-quarter 2021 investor letter and mentioned Novo Nordisk (NYSE: NVO). Here‘s what the fund said:

“Novo Nordisk is the global leader in insulin, which is, sadly, a growing business as more and more people around the world suffer from diabetes. millions of people need daily injections of insulin to stay alive54, a number that, unfortunately, is likely to continue to grow by millions more in the coming decade. It may seem at first glance that insulin should be a commoditized business, after all, it was discovered and synthesized over a hundred years ago, but nothing could be further from the truth. There are many types of insulin and Novo Nordisk has spent billions on R&D over the years to develop new products. On February 11th, the company reported favorable results from a phase-3 trial of Semaglutide, a drug that is currently used for Type 2 diabetes treatment. The study evaluated the use of Semaglutide for weight loss treatment in non-diabetic patients and found a significant impact on weight loss for patients receiving Semaglutide vs. the placebo control group. If Semaglutide is approved for weight loss treatment, we expect it will be meaningfully accretive to the company’s bottom line.

The company’s proprietary product line supports returns on invested capital of over 40%, and while sales growth is relatively slow (+6% annualized CAGR over the past decade), the company’s shares trade at a reasonable valuation of only 22x forward earnings. For a company with an extremely predictable business, high returns on capital, and an easily forecastable future, we believe this to be highly attractive.”

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