Can NVO Defend Its Obesity Lead as GLP-1 Competition Intensifies?

Core Insights - Novo Nordisk (NVO) is a leading player in the cardiometabolic market, primarily through its semaglutide-based drugs, Ozempic and Wegovy, which have seen slowed sales momentum due to various pressures [1][9] - The competitive landscape is intensifying with smaller biotech firms, such as Structure Therapeutics, making significant advancements in obesity treatments, exemplified by the promising results of their candidate aleniglipron [2][3] - Novo Nordisk is actively developing next-generation obesity treatments and expanding its semaglutide franchise to maintain its market position [5][7] Company Performance - NVO's shares have decreased by 58.5% over the past year, underperforming both the industry and the S&P 500, which grew by 7.1% during the same period [11][13] - The company's current price/earnings ratio stands at 12.73, significantly lower than the industry average of 16.48 and below its five-year mean of 29.25 [14] - Earnings estimates for 2025 and 2026 have declined, with 2025 estimates dropping from $3.66 to $3.58 per share and 2026 estimates from $3.91 to $3.65 [16] Competitive Landscape - Eli Lilly (LLY) is a major competitor, marketing its tirzepatide drugs and investing in various new obesity treatments, including orforglipron and retatrutide, with regulatory applications expected soon [8] - Viking Therapeutics (VKTX) is also progressing in the GLP-1 space with its candidate VK2735, which is being developed in both oral and subcutaneous forms for obesity treatment [9][10]