Can Eli Lilly Keep Up as NVO Eyes First Oral Obesity Pill Approval?
LLY's orforglipron study results disappoint, shifting investor focus to Novo Nordisk's bid for first FDA-approved oral obesity pill.
Novo Nordisk: Enough Is Enough
Novo Nordisk A/S's Q2 earnings disappointed as management issued a cautious growth outlook, but I believe the market overreacted to these headwinds. Despite competition and knock-off products, Novo Nordisk's block-buster Wegovy weight-loss drug continues to drive strong revenue growth for the drug maker. Eli Lilly's weaker-than-expected weight-loss drug results have renewed optimism for Novo Nordisk, and the new CEO change should help reduce negative sentiment.
Industry Analysis: Pharmaceuticals Like Novo Nordisk Offer Long-Term Opportunities
I invest for long-term total return, prioritizing dividend growth and quality companies trading at bargain valuations, especially during industry downturns. Despite current headwinds like tariffs and patent expirations, I see long-term opportunity in top-tier pharmaceutical stocks due to strong fundamentals and future AI benefits. My quantitative screen highlights six pharma leaders, with Novo Nordisk (NVO) and Merck (MRK) scoring highest across dividends, growth, capital structure, and free cash flow.
Why I Tripled My Novo Nordisk Position
Novo Nordisk's steep stock decline has pushed it into deep undervaluation, now trading at attractive multiples below historical averages. Despite lowered 2025 guidance and slower growth, core products Ozempic and Wegovy continue to deliver impressive sales and global expansion opportunities. Heavy capital expenditures are temporary, aimed at expanding manufacturing to meet strong demand; long-term free cash flow margins should recover.
Novo Nordisk: This Won't Last
Novo Nordisk is still the GLP-1 king, with over 65% market share and blockbuster drugs like Ozempic and Wegovy continuing to drive global growth. The recent stock correction presents a rare long-term buying opportunity, supported by a strong pipeline, manufacturing expansion, and international momentum. The valuation is attractive relative to historical metrics, with a +3% yield and significant room for capital appreciation as demand continues to outpace supply.
The rise, fall and rise again of Novo Nordisk shares
CNBC's Silvia Amaro takes a look at the rise and fall in Novo Nordisk shares.
Novo Nordisk: More Pain On The Horizon
Novo Nordisk faces slowing revenue growth, weak Q2 2025 results, and a more conservative outlook, signaling challenges ahead. Competition from Eli Lilly is intensifying, forcing Novo to increase marketing spend, which risks margin compression and weaker shareholder returns. Despite a significant share price drop, Novo Nordisk remains overvalued with a forward P/FCF ratio of 35, far above sector medians.
Novo Nordisk A/S (NVO) Q2 2025 Earnings Call Transcript
Novo Nordisk A/S (NVO) Q2 2025 Earnings Conference Call August 6, 2025 7:00 AM ET Company Participants David S. Moore - Executive VP of US Operations & Member of Management Board Jacob Martin Wiborg Rode - Head of Investor Relations Karsten Munk Knudsen - Executive VP, CFO & Member of the Management Board Lars Fruergaard Jorgensen - President, CEO & Member of Management Board Ludovic Helfgott - Executive VP of Product & Portfolio Strategy and Member of Management Board Martin Holst Lange - Executive VP of Development & Member of the Management Board Maziar Mike Doustdar - Executive VP of International Operations & Member of the Management Board Conference Call Participants Emmanuel Douglas Papadakis - Deutsche Bank AG, Research Division Evan David Seigerman - BMO Capital Markets Equity Research Martin Parkhoi - SEB, Research Division Michael Novod - Nordea Markets, Research Division Michael Thomas Nedelcovych - TD Cowen, Research Division Peter Verdult - BNP Paribas Exane, Research Division Richard Vosser - JPMorgan Chase & Co, Research Division Sachin Jain - BofA Securities, Research Division Operator Good day, and thank you for standing by.
Novo Nordisk: Is there life after slow death for slimmed down drug maker?
After a brutal 52% slide this year (not helped by a surprise profit warning last week), Novo Nordisk (NYSE:NVO) is struggling to regain its footing. Wednesday's second-quarter results confirmed the picture: rising competition in the weight-loss market is hitting margins, with Eli Lilly's Mounjaro and cheaper compounded copycats in the US putting the squeeze on Wegovy and Ozempic sales.
Novo Norisk: The struggle is real and getting harder by the day
After last week's profit warning and leadership shake-up, Novo Nordisk's latest earnings update offered little new, though the company's growing struggle against rivals such as Eli Lilly and cheaper weight-loss drug alternatives in the US continues to loom large. The Danish group, known for its blockbuster obesity treatment Wegovy, confirmed it would tighten its commercial operations and rein in spending following a turbulent week that saw it slash its 2025 outlook and announce a change at the top.
Novo Nordisk's Wegovy Weight-Loss Drug Sales Surge Despite Copycat Issues
Second-quarter sales of the blockbuster drug soared 67% on year, despite millions of U.S. patients using generic unbranded versions of the drug.
Wegovy maker Novo Nordisk's sales hike in second quarter
Wegovy maker Novo Nordisk's sales hike in second quarter
