ZACKS·2026-02-09 15:56Core Insights - Novo Nordisk's shares faced significant pressure due to a disappointing 2026 outlook, overshadowing a strong fourth-quarter performance [1] - Hims & Hers Health's announcement to launch a compounded oral semaglutide pill intensified competition in the weight-loss market, posing a threat to Novo Nordisk's flagship product, Wegovy [2][3] - The FDA's intervention against non-FDA-approved compounded GLP-1 drugs provided a temporary relief for Novo Nordisk's stock, which rebounded sharply [6] Company Performance - Novo Nordisk's stock has declined by 4.5% over the past six months, underperforming the industry growth of 34.5% [11] - The company's shares are trading at a price/earnings ratio of 14.31, lower than the industry average of 18.76 and significantly below its five-year mean of 29.25 [14] Market Dynamics - The obesity treatment market is becoming increasingly competitive, with Eli Lilly also advancing its GLP-1-based drugs and seeking approval for an oral GLP-1 pill [8] - The introduction of lower-priced alternatives, such as Hims' $49 compounded pill, raises concerns about pricing power and demand for Novo Nordisk's products [4][9] Regulatory Environment - The FDA has issued warnings against misleading marketing of compounded GLP-1 drugs, which could impact companies like Hims & Hers Health [6] - Novo Nordisk has indicated potential legal actions to protect its intellectual property and patient safety in response to the competitive threat [5] Earnings Estimates - Earnings estimates for Novo Nordisk have declined, with 2026 estimates dropping from $3.55 to $3.32 per share and 2027 estimates from $3.65 to $3.39 [17]