Investors like Novo growth, but can it continue?
This article was originally published in Scrip
Executive Summary
Since 4 August 2014, traders on the stock market have indicated that GlaxoSmithKline is worth less than Novo Nordisk ($112.5bn versus $116.5bn at the end of trading on 12 August, respectively). This has nothing to with current size and performance (Figure 1): GSK is a much bigger company, with revenue 2.8 times that of Novo and net profit (earnings) more than 2.3 times as big.