Should You Invest in Ozempic Maker Novo Nordisk in 2026?

Core Viewpoint - Novo Nordisk's stock has experienced a significant decline of 40% in 2025, primarily due to competition from Eli Lilly's Zepbound and telehealth companies, but recent FDA approval of the Wegovy pill could revitalize the company's prospects [2][4]. Group 1: Company Performance - Novo Nordisk's shares fell by 40% in 2025, leading to the firing of its CEO due to competitive pressures [2]. - Despite the stock decline, Novo Nordisk has shown double-digit percentage revenue growth in its most recent quarter, and its earnings per share have roughly doubled since early 2023 [10]. - The stock currently trades at a price-to-earnings ratio of 13 times its expected 2025 earnings, which is considered a bargain price [12]. Group 2: Product Development - The FDA approved the Wegovy pill, making it the first oral GLP-1 drug on the market, with participants in a phase 3 trial showing a mean weight loss of 16.6% over 64 weeks [5][6]. - Wegovy will be available for patients in early January, and the company has built up sufficient supply for an aggressive product launch [7]. - The approval of Wegovy is expected to help Novo Nordisk counteract competitive pressures and could significantly accelerate the company's top-line growth by mid-2026 [6][12]. Group 3: Investment Potential - If Novo Nordisk can achieve an annualized earnings growth rate of 15% or higher, it could justify a price-to-earnings ratio above 20, leading to a potential share price gain of over 50% [13]. - The current dividend yield of 3.3% is near its highest yield on record, adding to the attractiveness of the stock as a market-beating investment in 2026 [14].