Q. Please give an opinion on shares of Novo Nordisk A/S. — V.S., via the Internet

A. The world's largest maker of insulin holds more than half of the global market in diabetes treatments.

Not only is the number of diabetes cases expected to rise due to an aging population and sedentary lifestyles, but the chronic disease also often requires lifelong treatment.

Denmark-based Novo Nordisk is investing $400 million in a new insulin-production plant in Tianjin, China, as part of its plan to become a key player there. The plant is expected to be operational in 2012.

While generic competition for its best-selling products appears to be years away, risks of competing treatments, regulatory issues and litigation are always present.

Shares of Novo Nordisk (NVO) are down 30 percent this year after gains of 55 percent last year and 49 percent in 2006. The firm has strong cash flow and nearly no debt.

The non-profit Novo Nordisk Foundation owns about 26 percent of the company, and its super-voting "A" shares entitle it to 69 percent of total votes. The result is that shareholders of "B" shares publicly traded as American depositary receipts do not have meaningful voting power in company decisions.

The stock of Novo Nordisk currently receives one "hold," one "underperform" and one "sell" rating from the analysts who track it, according to Thomson Financial.

Novo Nordisk reported a 22 percent gain in third-quarter net income thanks to strong demand for its products and favourable exchange rates. It also raised its full-year guidance for growth in operating profits to a range of 32 percent to 35 percent, or 10 percentage points higher than its previous guidance.

Earnings are expected to increase 16 percent this year and 4.5 percent next year, according to Thomson Financial, with the five-year annualised growth rate forecast as 15 percent.

Q. Please give an opinion of Artisan Small Cap Value Fund. — C.L., via the Internet

A. The fund seeks small-cap stocks selling at 30 percent to 50 percent discounts to what the managers consider the company's underlying value, which hasn't exactly been a winning proposition lately.

But it does have an experienced management team run by Scott Satterwhite, who has been in charge since the fund's inception 11 years ago. That team bought energy stocks when they were beaten down in 2001 and enjoyed their rally. It cut back last summer because of valuation concerns just before that group took a tumble.

The $1.5 billion Artisan Small Cap Value Fund (ARTVX), which is closed to new investors, is down 38 percent over the past 12 months and has a three-year annualised decline of 12 percent. Both returns rank in the upper one-fourth of small value funds.

"We like this fund because, while you're probably not going to want it as a core holding, it makes a very nice supporting player," said Greg Carlson, analyst with Morningstar Inc. in Chicago. "While it is down this year, it is still better than the bulk of its competitors."

Andrew Leckey answers questions only through the column. Address inquiries to Andrew Leckey, 555 N. Central Ave., Suite 302, Phoenix, AZ 85004-1248, or by e-mail at andrewinv@aol.com.