Friday File: Like Buying NVDA In 2017

There are times when you see major growth coming - this is one of those times.

It’s like buying NVIDIA (NVDA) back in 2017. 

The advanced chipmaker hit $8 billion in annual sales that year and its shares were trading for $35. 

It’s now targeting $90 billion in sales this year and started the year at $500 per share.

Although we’re no fans of NVIDIA stock at this point (we lay out the bear case right here), we can appreciate the 1300%+ run.

And it’s why we’re choosing it at the comparable for a growth opportunity with fading hype, yet facing NVIDIA-like growth potential.

The Next $100 Billion/Yr Industry Hit $8 Billion Last Year

I’m talking about GLP-1 drugs like Ozempic.

Nearly everyone has heard of Ozempic by now.

It was at the center of one the most well-executed media storms ever devised earlier this year.

And that campaign is trailing off now. 

But the fundamental growth of the user base is still growing as fast as ever. 

These drugs hit $8 billion in sales last year and we’ve broken down three reasons for why this growth will continue. 

The first reason is because these drugs are “long-term” treatments. 

The average treatment is expected to last more than five years. 

That’s years and years of revenues from each patient. 

Second, the drugs are expensive. 

Right now most U.S. insurers only cover them in the most extreme cases and/or only in a few different states. 

This will change over time and greatly expand the market.

The third reason is more applications for GLP-1 drugs.

You’ve already seen the potential of what can happen when this happens..

For example, Ozempic was first approved as a diabetes treatment in 2017. 

The drug did well, but it didn’t become a pop culture phenomenon until it was approved for weight loss. 

The one additional application for the drug was transformative. 

There are current studies underway to use GLP-1 drugs as treatments in many other conditions.

These are three core reasons why GLP-1 drugs are on their way to being a $100 billion+ industry.

Now, we’ll get to the tricky part. 

The Easy Way Or The Hard Way

That is how to play for max gains.

The obvious players are the early GLP-1 leaders, Novo Nordisk (NVO) and Eli Lilly (LLY).

Not much wrong with those.

They’re expensive, sure. 

The inevitable dips they will face will be opportunities too.

But there has to be more here with this kind of money coming in.

So we’re going to focus on the up and comers in biotech and beyond that are looking to ride this way.

Over the next weeks we’ll get deep into those.

All the best, 

Andrew Mickey
Executive Editor, Shareholder Intel Action