Future looks bright for Novo Nordisk as diabetes care leader  

The global diabetes care market is both recession-proof and ever-expanding, with Novo Nordisk best placed to profit the most from the high growth
For many sectors of business worldwide, the global recession continues to keep the lid firmly on any immediate prospects of recovery and growth. But there are exceptions, such as the diabetes care market – which by its nature is not only recession-proof, but is also growing globally at a relentless pace.
For Denmark's Novo Nordisk, the global market leader in diabetes care with a new, potential blockbuster insulin analog product (liraglutide) now in the launch phase, the future looks far from gloomy, with massive earnings opportunities ahead and analysts marking the share as a 'buy'.
Rune Majlund Dahl, an analyst at Sydbank, comments in a recent article in financial daily newspaper Børsen: "Growth rates for the treatment of diabetes will be markedly higher compared with the rest of the pharmaceutical industry. There is therefore major potential in the insulin market, which Novo Nordisk will profit from."
The figures make it easy to see what major potential means. Novo Nordisk is the insulin market leader on both sides of the Atlantic, with a 43% share in the US and a 56% share in Europe. The company is therefore well-placed to capitalize on the projected growth of the global diabetes products market, which according to data shown by Børsen is set to rise from the current year's revenue figure of just below DKK 40bn (approx. USD 7.6bn) to around DKK 55bn (USD approx. 10.5bn) in 2014.
"As market leader, Novo Nordisk stands to profit the most from the high growth. We will come to see intensified competition on account of the sustained high growth rates, but it will be difficult to topple Novo Nordisk from its leading position," says Rune Majlund Dahl.
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