05 May 2023
Key Indicators
| Index / Fund / Rate | Start of Year | Last week | This Week | % change YTD |
|---|---|---|---|---|
| Lunar BCI WW Flexible Fund | 141.43 | 161.59 | 160.55 | 13.52% |
| JSE ALSI | 73 049 | 78 218 | 78 133 | 6.96% |
| NASDAQ Composite | 10 467 | 12 227 | 12 235 | 16.90% |
| S&P 500 | 3 840 | 4 169 | 4 136 | 7.71% |
| Prime Lending Rate | 10,50% | 11.25% | 11.25% | 7.14% |
| USD/ZAR | 16,98 | 18.36 | 18.41 | 8.42% |
| EUR/ZAR | 18,44 | 20.14 | 20.29 | 10.01% |
| Brent Crude ($’barrel) | 85,95 | 80.25 | 75.27 | -12.43% |
Source: Iress
Weekly Stocktake with Danyaal
Long Life Novo Nordisk
Over the last few decades, the average life expectancy in developed nations has been increasing. This has been due to a number of factors such as advancements in medical technology, improved public health measures, and a greater focus on preventative care. However, some consequences of people aging, is that they are more likely to develop chronic health conditions such as heart diseases, cancer, and diabetes – all of which require ongoing medical care.
Novo Nordisk, a Lunar Capital holding, is a Danish pharmaceutical company that specialises in the development and manufacturing of treatments for diabetes, obesity, and other chronic diseases. Novo Nordisk, along with Eli Lilly (another Lunar Capital holding) are two of the leading players treating chronic medical-conditions.
Ozempic, a popular treatment developed by Novo Nordisk, was initially used to treat type-2 diabetes. However, it was discovered that Ozempic influences weight loss as well. The medication produces a digestive hormone called glucagon that ultimately reduces appetite, leading to weight loss in patients. In the United States, Ozempic is currently only FDA-approved drug for use in treating type-2 diabetes. However, some physicians may prescribe Ozempic for off-label use, which allows them to prescribe the medication for other conditions, such as treating obesity. Some studies indicate that approximately 40% of people in the USA are obese, providing a large market for drugs such as Ozempic.
Pharmaceutical companies operate in a highly regulated industry with country-specific requirements that can be challenging to navigate. Developing new treatments is a lengthy and costly process with no guarantees of success, but these companies invest heavily in research and development to remain competitive. However, the industry’s public-facing nature means that any negative outcomes or unintended consequences from treatments could result in significant reputational and financial losses. Nonetheless, if pharmaceutical companies can navigate these challenges successfully, they can be compensated well for it.
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