Novo Nordisk Soars 19% in a Month: How Should You Play the Stock?

Core Insights - Novo Nordisk's shares have increased by 18.8% in the past month due to the FDA approval of its Wegovy pill for obesity and cardiovascular risk reduction [2] - The approval of oral Wegovy marks a significant milestone as it is the first GLP-1 RA available in oral form for weight management, offering a more convenient administration option compared to injectables [3] - Novo Nordisk has gained a competitive edge by launching oral Wegovy before Eli Lilly's oral obesity drug, which is still under FDA review [4] Financial Performance - Ozempic and Wegovy generated DKK 152.5 billion in revenue during the first nine months of 2025, highlighting their role as major revenue drivers for the company [10] - Earnings estimates for 2025 have slightly decreased from $3.58 to $3.57 per share, and for 2026 from $3.65 to $3.51 [24][26] Competitive Landscape - Eli Lilly remains a strong competitor, with its tirzepatide-based drugs generating $24.8 billion in sales in the first nine months of 2025, accounting for 54% of its total revenues [13] - Novo Nordisk is facing increasing competition in the obesity treatment market, with new entrants like Viking Therapeutics developing GLP-1-based therapies [28] Strategic Developments - Novo Nordisk has submitted a regulatory application for CagriSema, a next-generation once-weekly injection for weight management, with FDA review expected in 2026 [5] - The company is also expanding its presence in rare diseases and liver care, with recent approvals for treatments related to hemophilia and liver conditions [14][15] Market Positioning - Novo Nordisk is currently trading at a discount compared to the industry, with a price/earnings ratio of 17.02, lower than the industry average of 17.56 [21] - Despite recent stock performance challenges, the company retains strong fundamentals and a broad pipeline, indicating potential for long-term growth [28]