Novo Nordisk A/S (NASDAQ:NVO) is back in the headlines, and not just for its blockbuster weight-loss drug, Ozempic. President Donald Trump recently suggested a dramatic price cut for the drug, sparking some short-term market jitters. But underneath the noise, the stock is cheap at a 14 P/E, and its core drug patents won't expire until 2032, giving investors a long-term protective moat.
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Cheap Stock, Strong Moat
While the broader biotech sector has seen high valuations, Novo's low multiples stand out. At 14 P/E and reasonable forward ratios, the stock offers a rare combination of value and durability, unlike peers trading at stretched multiples. Add the long patent life, and Novo can maintain exclusivity, pricing power, and market dominance for years to come.
That cheap multiple looks even more compelling when stacked against drugmakers like Eli Lilly And Co (NYSE:LLY), which trades near 27 times forward earnings. Novo's discount isn't about weak performance — it's about investor anxiety over potential pricing reforms. Yet, the company's proven ability to scale production, manage supply, and expand in global markets makes that fear look overdone.
Read Also: Pfizer’s TrumpRx Pact Sends Shockwaves: Why UnitedHealth, Lilly And CVS Can’t Look Away
Long-Term Growth Tailwinds
Novo's revenue drivers go beyond Ozempic. Wegovy and other GLP-1 drugs position the company to benefit from growing demand for diabetes and obesity treatments.
Even if political pressures trim short-term margins, the patent-protected portfolio provides a long runway for earnings growth. Investors can ride the wave of GLP-1 adoption without worrying about immediate generic competition.
Volatility Isn't The Thesis Killer
Trump-induced chatter may inject some short-term volatility, but it doesn't change the fundamentals. Novo Nordisk's attractive valuation and patent protection until 2032 remain the core story.
For investors seeking a defensive yet growth-oriented pharma play, Novo stock still offers one of the best risk/reward profiles in the sector—cheap, protected, and poised to run.
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