Forbes·2025-11-25 14:50Core Insights - Novo Nordisk is cutting 9,000 jobs due to profit warnings linked to increased competition from "knock-off" weight-loss drugs and the failure of its Ozempic pill in Alzheimer's trials [2][4][5] - The company's stock has faced significant pressure, with a nearly 65% decline from its all-time high in 2024, while Eli Lilly's stock has surged, highlighting a divergence in performance [8][10] Company Performance - Novo Nordisk's revenue growth for 2024 is projected at 26%, while Eli Lilly is expected to achieve 32% growth [11] - Year-to-date revenue growth for 2025 shows Novo Nordisk at 15% compared to Eli Lilly's 46% [11] - Operating profit margins for Novo Nordisk stand at 42%, slightly higher than Eli Lilly's 39% [11] Competitive Landscape - Eli Lilly's aggressive pipeline, particularly with its oral GLP-1 pill Zepbound, provides a competitive edge over Novo Nordisk, which is also developing oral semaglutide [7] - The market for GLP-1 drugs is becoming fragmented, with increasing competition affecting Novo's market share [8][9] Valuation and Risks - Novo Nordisk's current valuation multiple is 13x TTM P/E, which is appealing compared to Eli Lilly's 49x, but reflects ongoing competitive pressures and margin contraction [11] - Supply constraints and pricing pressures are impacting Novo's margins, which have recently contracted [9] - The absence of new blockbuster candidates in its pipeline raises concerns about future growth [9][10]