(Photo Credit: vjeran2001)
By Catherine Austin Fitts
Tonight we are going to review the process of analyzing one company for potential investment. As our example, we will use a Danish pharmaceutical company, Novo Nordisk.
Company Website – Investors Relations
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If I actually trusted the stock market, there is no doubt that Nova Nordisk would be the one pharmaceutical company I would consider as an investment. When Eli Lilly shut out tens of thousands of American diabetics by discontinuing first their pork-insulin based products and then discontinued the long-term insulin, Lente, my late husband (who died last year at age 53) a type I diabetic, did the research and moved to Nova Nordisk, the company that essentially “invented” insulin for diabetes. For my husband who had been battling the disease for over 45 years, the loss of his insulin was devastating as he interpreted that the American company gave up on this small group of diabetics who had been so dependent on their products for most of their lives. (He called the company and was met with a do-loop of call transfers that got him no where.) The percentage of diabetics living for that length of time falls to about 5% of the original population so for Eli Lilly, it was about profit, not about the people whose lives were dependent on them. For those who do not rely on insulin out of a needle, you might not know that diabetics must take long-term insulin to cover them for the night, when hormones affect the insulin requirement and during the day when activity changes that requirement (any activity), and then they must take short-term insulin for eating. Additionally, the combination of metabolic individuality, personal activity, and so forth make some long-term insulin better than others on an individual basis. Some long term insulins require one injection per day (per individual), some require two per day which you can only determine through trial and error. Lente was ideal for my husband, but humulin was a disaster. It was with great anger toward Eli Lilly that my husband turned to Novo Nordisk (Denmark) for his insulin, which he had to order in advance since many local pharmacies did not carry their products, and it took over two months of very careful study, charting everything, in order to determine the correct timing and dosage. As the caregiver, I can only tell you how maddening it is to have Eli Lilly totally threaten the life of a loved one over profitability even though I completely understand the concept. Novo Nordisk, on the other hand, has remained steadfast and has improved their diabetes treatment without leaving their dependents without product. This company receives my vote of confidence (for what that is worth).
Having said all that, thank you, Catherine, for actually considering a company and what they represent. In today’s trading environment, it is so more about volatility, about betting on taking a profit more than considering the company for it’s contribution to life on the spaceship. Novo Nordisk is one of those companies that is about people AND profit; it is one of the good guys.
Jane:
I really appreciate your posting this story. It was our blogmaster who chose Novo, in part because of their reputation for responsibility. I knew very little about them, so I am very glad for your insight. The more I learn from a wide variety of people about direct experience, the better.
Catherine