2 Pharmaceutical Stocks Set to Rebound in 2026

Group 1: Novo Nordisk - Novo Nordisk lost market share in the weight management drug market last year but has potential for a rebound in 2026 due to important label expansions and new product approvals [2][4] - The approval of an oral version of Wegovy marks a significant milestone for Novo Nordisk, potentially regaining momentum in its primary therapeutic area [3] - The company is awaiting regulatory approval for CagriSema, a next-gen anti-obesity drug that has shown superior performance in late-stage clinical trials [4] - Novo Nordisk is also making clinical progress with Amycretin, which is undergoing phase 3 studies in obesity, and has both oral and subcutaneous formulations in late-stage trials [5] Group 2: Merck - Merck has already begun its rebound, showing strong performance towards the end of 2025, with further upside expected in 2026 [6] - Clinical progress in several programs, such as Winrevair for pulmonary arterial hypertension, is crucial for Merck's growth, with a recent phase 2 success indicating positive momentum [6] - The development of CD388, a long-acting antiviral drug for influenza, could address the limitations of current flu vaccines, particularly for high-risk populations [7] - Merck's clinical advancements may help the company navigate an upcoming patent cliff effectively [8]