While Ozempic maker Novo Nordisk has fallen on tough times, Wall Street analysts have still been reluctant to advise investors to sell the stock, until Deutsche Bank lowered the boom on Thursday.
China's drug regulator has accepted Novo Nordisk's marketing application for the oral version of its weight-loss drug Wegovy, the Danish drugmaker said in a statement on Thursday.
Novo Nordisk and Structure Therapeutics are taking different paths in the obesity market, from a global GLP-1 leader to a clinical-stage challenger with oral therapies.
Eli Lilly (NYSE:LLY | LLY Price Prediction) and Novo Nordisk (NYSE:NVO) both reported Q2 2026 results in early August, and the split screen was jarring.
Novo Nordisk stock appears to have formed a long-term bottom, with its turnaround gaining traction as market share losses to Eli Lilly stabilize. NVO trades at just over 15x forward earnings, half LLY's multiple, with downside risk now materially reduced given improved guidance and resilient profitability. Despite steep pricing pressures and lower gross margins, NVO's weight loss franchise remains highly profitable, and the recent Wegovy pill's performance boosts confidence.
Novo Nordisk A/S remains a Strong Buy, trading at just 12.5x P/E despite robust growth and global expansion beyond the US market. Novo Nordisk's international operations now drive 65% of group growth, with EUCAN obesity care up 52% at CER and the oral franchise outpacing competitors. US list price cuts in 2027 are misunderstood; realized net pricing and structural liabilities will shift, but net revenues are unlikely to halve.
Among the pharma names investors debate most, Eli Lilly (NYSE:LLY | LLY Price Prediction) at $1,216.46 screens most constructively, Novo Nordisk (NYSE:NVO) at $45.92 looks range-bound, and Merck (NYSE:MRK) at $135.97 screens as fairly valued.
The study will run into 2028, testing two low doses of Wegovy, and follows the company disclosing recently that uptake of the pill had been particularly strong for its lowest doses across self-paying patients.
Danish drugmaker Novo Nordisk is testing lower doses of its Wegovy pill in a new late-stage study to find the lowest dose that still helps patients lose weight, according to a U.S. government database of clinical trials.
Novo Nordisk CEO argues weight loss drugs could slash health care costs and boost productivity as GLP-1 adoption remains in its early innings.
NVO faces near-term pressure from flat Wegovy sales, pricing challenges and pipeline setbacks, but its broad cardiometabolic pipeline offers long-term potential.
Novo Nordisk remains a Buy, underpinned by strong long-term fundamentals and a promising lead in obesity care, especially with the Wegovy pill. Despite near-term challenges—declining gross margins, high CapEx, and a failed ziltivekimab trial—Novo Nordisk's operating margins and capital allocation remain robust. Management raised 2026 guidance, now expecting adjusted sales and operating profit to decline up to 6%, a significant improvement from prior outlooks.