Novo Is Open to Acquisitions. Here Are 2 Companies That Would Be Great Candidates to Buy
Could this be what Novo needs to turn things around?
Overview
Novo Nordisk (NYSE: NVO) has a problem. The company generates most of its revenue from its diabetes and obesity products, but stiff competition from Eli Lilly (NYSE: LLY) in these markets has significantly disrupted its business. To make matters worse, other drugmakers will launch brand-new products in this field over the next few years. Novo Nordisk could struggle even more in a more competitive environment.
To Novo Nordisk's credit, the company has a fairly attractive pipeline, but it could expand it through licensing deals or acquisitions. In fact, Novo recently acquired three obesity assets from Kallyope, a privately held biotech. Could the pharmaceutical giant acquire smaller companies to further beef up its pipeline? If Novo does decide to go that route, here are two companies that could be great targets: Kailera Therapeutics (NASDAQ: KLRA) and Viking Therapeutics (NASDAQ: VKTX).
Image source: The Motley Fool.
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Originally published at www.fool.com.