Novo Nordisk stock price

Key Point

  • Novo Nordisk and Nvidia have announced a groundbreaking partnership to develop supercomputers focused on pharmaceutical and other healthcare applications.
  • The project involves building a supercomputer in Denmark utilizing Nvidia's DGX SuperPOD and Nvidia's other AI-focused equipment.
  • Eli Lilly, Novo Nordisk's rival in the weight loss space, is collaborating with China-based XtalPi to accelerate drug discovery and development using AI.
  • 5 stocks we like better than NVIDIA

As Novo Nordisk A/S, two of this year's biggest investment themes – artificial intelligence and anti-obesity drugs – are finally coming together. New York Stock Exchange: NVO and Nvidia Inc. NASDAQ:NVDA The two companies announced a partnership in the development of supercomputers.

In parallel with Nvidia's developer conference in March, the Novo Nordisk Foundation announced that it will build a supercomputer in Denmark using the Nvidia DGX SuperPOD, an AI data center supercomputer. This project also uses other of his Nvidia gear designed for large-scale AI language modeling.

The Novo Nordisk Foundation has a controlling stake in pharmaceutical giant Novo Nordisk.

The Danish Export Investment Fund is also an investor in the project, which aims to help Danish researchers collaborate with Nvidia teams on projects such as pharmaceuticals and biotech.

AI computing power for healthcare applications

Mads Krogsgaard Thomsen, CEO of the Novo Nordisk Foundation, said: “Drug discovery, disease diagnosis and treatment, as well as complex life sciences challenges, are where advanced AI computing capabilities can enable positive social change. This is an example of a field in which statement.

The use of artificial intelligence in the pharmaceutical industry is not new.

For example, in 2023, Eli Lilly & Co. New York Stock Exchange: Lilly, Novo Nordisk's big rival in the business of manufacturing anti-obesity and diabetes drugs, has partnered with pharmaceutical technology specialist XtalPi to identify potential drug candidates. Lilly's goal is to accelerate the clinical trial and commercialization process.

Other major pharmaceutical companies that have partnered with China-based XtalPi include Pfizer. New York Stock Exchange: PFE and johnson & johnson New York Stock Exchange: JNJ.

Weight loss drugs and diabetes drugs drive stock gains

Novo Nordisk and Lilly are two of the largest pharmaceutical stocks by market capitalization.

Lilly is the largest pharmaceutical product in the Healthcare Select Sector SPDR Fund NYSEARCA: XLV. Similar to Novo Nordisk, the company's recent growth has been driven by the success of its anti-obesity and diabetes drugs.

Although Novo Nordisk is based in Denmark and is not included in the S&P 500, its value exceeds that of Johnson & Johnson and Merck & Co. New York Stock Exchange:MRK and AbbVie Inc. New York Stock Exchange: ABBVis the third largest S&P pharmaceutical company after Eli Lilly.

Positive news about weight loss drugs

The race for better weight loss drugs is similar to the race for faster and better AI processing chips. This puts not only Nvidia, but also Eli Lilly and Novo Nordisk in the ranking of the world's most valuable companies.

On March 7, Novo Nordisk shares rose nearly 9% on positive news about clinical trials for the weight-loss drug amicletin. MarketBeat's Novo Nordisk chart shows the gap.

More effective than injection treatment

Early signs indicate that amicletin may be more effective than Novo Nordisk's current blockbuster drug, the injectable Wigovy.

Pharmaceutical analysts say that if the pill version of the anti-obesity drug is more effective than WeGoby, it could be more effective than Ozempic, a diabetes drug that contains the same ingredient as WeGoby.

Plus, what patient wouldn't prefer taking a pill over an injection? Even those who aren't afraid of injections will appreciate the convenience of medication in pill form.

Meanwhile, Nvidia has made inroads into the healthcare industry, and not all of them have been well-received.

Nvidia's Expanding Focus on Healthcare

On March 19, also as part of a developer conference, Nvidia announced it was collaborating on technology with a company called Hippocratic AI in hopes of forging emotional connections with patients.

Nvidia is also partnering with AI leader Microsoft Corp. NASDAQ:MSFT Accelerate the use of generative AI in healthcare settings. The partnership aims to accelerate drug discovery and clinical research, as well as Eli Lilly's use of AI.

In addition to drug development, the Nvidia and Microsoft healthcare partnership will also focus on diagnostic imaging and precision medicine.

Finally, Nvidia announced a partnership with GE HealthCare Technologies Nasdaq: GEHC Develop A technology for ultrasound applications.

Hear this before considering NVIDIA.

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