As the FDA Approves a Wegovy Pill, Should You Buy, Sell, or Hold Novo Nordisk Stock?

Core Insights - Novo Nordisk has a market capitalization of approximately $230.4 billion, reflecting its significant position in the global pharmaceutical industry [1] - The company has faced challenges in 2025, including reduced demand for its leading drugs and increased competition in the weight-loss sector, impacting investor confidence [1][4] Company Overview - Novo Nordisk, founded in 1923 and headquartered in Denmark, is renowned for its weight-loss drugs Ozempic and Wegovy, and has a strong focus on chronic diseases [2] - The company has transitioned from a focus on diabetes care to a broader emphasis on obesity and other severe conditions [2] Recent Developments - The FDA approved "Wegovy-in-a-pill" on December 22, 2025, marking a significant milestone for Novo and providing a competitive edge over Eli Lilly's similar product [3][5] - Following the FDA approval, Novo's shares rose nearly 7.3% on December 23, indicating a positive market reaction [5] Financial Performance - In Q3 2025, Novo reported total revenue of DKK 74.98 billion, a 5% increase year-over-year, driven by steady demand for diabetes and obesity treatments [7] - The diabetes and obesity care segment generated DKK 70.25 billion in sales, up 5.3% annually, with Wegovy sales increasing 18% year-over-year to DKK 20.35 billion [8][9] - Research and development expenses surged 62% year-over-year to DKK 15.39 billion, impacting profitability, which saw a 27% decline to approximately DKK 20 billion [10] Future Outlook - Novo has revised its full-year guidance for the fourth time in 2025, now expecting sales growth of 8% to 11% and operating profit growth of 4% to 7%, reflecting a cautious outlook amid competitive pressures [12] - Analysts maintain a "Moderate Buy" consensus rating for Novo, with a target price averaging $52.21, although some forecasts suggest potential upside to $70, indicating optimism about the company's future prospects [13][14]