{"id":302430,"date":"2026-02-26T03:04:08","date_gmt":"2026-02-26T03:04:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/302430\/"},"modified":"2026-02-26T03:04:08","modified_gmt":"2026-02-26T03:04:08","slug":"1-reason-why-id-hold-this-weight-loss-drug-leader-through-any-market-crash-2","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/302430\/","title":{"rendered":"1 Reason Why I&#8217;d Hold This Weight\u2011Loss Drug Leader Through Any Market Crash"},"content":{"rendered":"<p>Although pegged as a weight-loss stock, this drug maker&#8217;s core business has long been diabetes.<\/p>\n<p>Novo Nordisk (<a href=\"https:\/\/www.fool.com\/quote\/nyse\/nvo\/\" class=\"font-bold hover:underline\" rel=\"nofollow noopener\" target=\"_blank\">NVO<\/a> 1.21%) and Eli Lilly (<a href=\"https:\/\/www.fool.com\/quote\/nyse\/lly\/\" class=\"font-bold hover:underline\" rel=\"nofollow noopener\" target=\"_blank\">LLY<\/a> 1.28%) are locked in a battle around GLP-1 weight-loss drugs. It is a huge potential market, and the new class of drugs is very important. However, Novo Nordisk&#8217;s story is much bigger than weight loss. Here&#8217;s why it could be a long-term hold no matter what happens in the market, or with GLP-1 drugs.<\/p>\n<p>Novo Nordisk made insulin before GLP-1 drugs<\/p>\n<p>Novo Nordisk is one of the world&#8217;s largest producers of insulin, a vital medication for those with diabetes. Generally speaking, when you take insulin, you need it regularly. As such, Novo Nordisk has a very attractive recurring revenue stream. That&#8217;s an important foundation for the business.<\/p>\n<p><img alt=\"A pharmacist helping a customer with a medicine prescription.\" loading=\"lazy\" width=\"880\" height=\"587\" decoding=\"async\" data-nimg=\"1\" class=\"h-auto max-w-full rounded object-contain\" style=\"color:transparent\"   src=\"https:\/\/www.newsbeep.com\/nz\/wp-content\/uploads\/2026\/02\/1772075048_962_.jpeg\"\/><\/p>\n<p class=\"caption\">Image source: Getty Images.<\/p>\n<p>One area where <a href=\"https:\/\/www.fool.com\/investing\/stock-market\/market-sectors\/healthcare\/pharmaceutical-stocks\/\" class=\"text-cyan-900 hover:text-cyan-800\" rel=\"nofollow noopener\" target=\"_blank\">this pharmaceutical company&#8217;s<\/a> foundation shows up is in its dividend payout ratio. Despite falling behind Eli Lilly in the GLP-1 weight-loss drug space, Novo Nordisk&#8217;s trailing 12-month payout ratio is a very comfortable 40%. In fact, it has never risen above 50%, even during the deep 2007 to 2009 recession.<\/p>\n<p>Meanwhile, the dividend yield is well above the market at 3.9%. For reference, the average pharmaceutical stock has a yield of 1.7%. So the high yield here is well supported, and that&#8217;s largely thanks to the company&#8217;s strong diabetes business.<\/p>\n<p>GLP-1 drugs are important, too<\/p>\n<p>That said, investors shouldn&#8217;t ignore that Novo Nordisk is also <a href=\"https:\/\/www.fool.com\/investing\/how-to-invest\/stocks\/glp-1-stocks\/\" class=\"text-cyan-900 hover:text-cyan-800\" rel=\"nofollow noopener\" target=\"_blank\">a GLP-1 drug stock<\/a>. Eli Lilly has taken the lead, but Novo Nordisk remains an important player in the new drug niche. Notably, it recently launched the first GLP-1 pill, which should help it regain market share from Eli Lilly, at least in the short term. People prefer pills over shots, for obvious reasons.<\/p>\n<p><img alt=\"Novo Nordisk Stock Quote\" loading=\"lazy\" width=\"64\" height=\"64\" decoding=\"async\" data-nimg=\"1\" class=\"w-full flex-none object-contain\" style=\"color:transparent\"  src=\"https:\/\/www.newsbeep.com\/nz\/wp-content\/uploads\/2026\/02\/1772075048_371_.png\"\/><\/p>\n<p>Today&#8217;s Change<\/p>\n<p>(-1.21%) $-0.47<\/p>\n<p>Current Price<\/p>\n<p>$38.13<\/p>\n<p>Key Data Points<\/p>\n<p>Market Cap<\/p>\n<p>$130B<\/p>\n<p>Day&#8217;s Range<\/p>\n<p>$37.68 &#8211; $38.23<\/p>\n<p>52wk Range<\/p>\n<p>$37.65 &#8211; $91.90<\/p>\n<p>Volume<\/p>\n<p>2.2M<\/p>\n<p>Avg Vol<\/p>\n<p>22M<\/p>\n<p>Gross Margin<\/p>\n<p>80.90%<\/p>\n<p>Dividend Yield<\/p>\n<p>4.47%<\/p>\n<p>The takeaway from Novo Nordisk&#8217;s development of a GLP-1 pill is that it remains an innovative drug maker. The excitement around weight-loss drugs is so high that investors may be overlooking the company&#8217;s long-term opportunities and fundamental business strengths. All Wall Street is seeing is the fact that Eli Lilly&#8217;s GLP-1 drugs are performing better in the market right now.<\/p>\n<p>Novo Nordisk&#8217;s strong core business and ongoing innovation in a newly developing drug niche suggest this financially strong <a href=\"https:\/\/www.fool.com\/investing\/stock-market\/types-of-stocks\/dividend-stocks\/how-to-invest-in-dividend-stocks\/\" class=\"text-cyan-900 hover:text-cyan-800\" rel=\"nofollow noopener\" target=\"_blank\">dividend stock<\/a> is an attractive holding, no matter what the market is doing. Indeed, consumers are still going to need insulin during a bear market and people will probably still be looking to lose weight, too.<\/p>\n","protected":false},"excerpt":{"rendered":"Although pegged as a weight-loss stock, this drug maker&#8217;s core business has long been diabetes. Novo Nordisk (NVO&hellip;\n","protected":false},"author":2,"featured_media":302431,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[33],"tags":[134,524,111,139,69],"class_list":["post-302430","post","type-post","status-publish","format-standard","has-post-thumbnail","category-medication","tag-health","tag-medication","tag-new-zealand","tag-newzealand","tag-nz"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/302430","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=302430"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/302430\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/302431"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=302430"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=302430"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=302430"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}