We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Novo Nordisk vs. Viking Therapeutics: Which GLP-1 Stock Has More Upside?
Read MoreHide Full Article
Novo Nordisk (NVO - Free Report) and Viking Therapeutics (VKTX - Free Report) have emerged as notable players in the obesity space.
A market leader in the GLP-1 space, Novo Nordisk markets its semaglutide drugs under brand names Ozempic (pre-filled pen) and Rybelsus (oral tablet) for type II diabetes (T2D), and Wegovy (injection) for chronic weight management.
On the other hand, Viking Therapeutics is a clinical-stage biotech firm. Its investigational dual GIP and GLP-1 receptor agonist, VK2735, has shown blockbuster potential in early to mid-stage studies for treating obesity.
Though the comparison may seem mismatched, given the stark contrast in size and commercial maturity between the two companies, both are innovating within the same metabolic treatment space. Investors now face a key question: Should they favor the stability and proven track record of a pharmaceutical giant, or bet on a potential biotech disruptor? Let's examine the fundamentals of the two stocks to make a prudent choice.
The Case for NVO
Novo Nordisk has one of the broadest diabetes portfolios in the industry. The company continues to be the global market leader in the GLP-1 segment, with around 54% value market share as of the end of the first quarter of 2025.
Wegovy is a significant contributor to Novo Nordisk's revenues. Wegovy revenues surged 83% in first-quarter 2025 due to strong prescription growth, driving higher revenues and profits. Additionally, Ozempic sales are also contributing positively to overall revenues. NVO has been investing heavily to expand its manufacturing capacity as part of its strategic move to entrench its diabetes and obesity care market leadership for its GLP-1 products.
Following the acquisition of CDMO Catalent in late 2024, Novo Nordisk has enhanced its production capacity. The deal was primarily responsible for the removal of semaglutide products from the FDA’s shortage list. This indicates that the shortage of these products is resolved, and the agency is confident that the company can meet its current and future demand.
CVS Caremark, a major pharmacy benefit manager, recently announced that it would make Novo Nordisk’s Wegovy its preferred GLP-1 therapy for weight loss, effective July 1. NVO also announced partnerships with telehealth providers Hims & Hers Health to offer Wegovy at a discounted price to cash-paying patients. These are likely to give the company a commercial advantage in the obesity market.
Novo Nordisk is pursuing new indications for semaglutide, including label expansions for Wegovy in additional cardiovascular conditions and for Ozempic in T2D patients with chronic kidney disease. It is investigating semaglutide’s potential in metabolic dysfunction–associated steatohepatitis. These efforts could expand the eligible patient population for semaglutide and boost sales.
However, the company’s arch-rival Eli Lilly (LLY - Free Report) remains a formidable adversary in the obesity market space, which threatens its market share. LLY markets its tirzepatide injections under the brand name Mounjaro for T2D and Zepbound for obesity.
The NVO stock has also been under pressure due to disappointing data from two late-stage studies for its next-generation subcutaneous obesity candidate, CagriSema, a follow-up drug to Wegovy. In these studies, CagriSema demonstrated a lower-than-expected reduction in body weight.
The Case for VKTX
Viking is one of the few biotech stocks that has shown immense potential in this space. VK2735 has shown blockbuster potential, having demonstrated superior weight reduction capabilities in clinical studies, both as a subcutaneous (SC) injection and an oral pill.
The company started the phase II VENTURE-Oral Dosing study on the oral formulation earlier this year, with data readout expected in the second half of 2025. The company is also on track to start the late-stage study on the SC version in the second quarter of 2025.
Beyond VK2735, Viking is expanding its obesity pipeline. It plans to file an investigational new drug application to begin clinical studies on its novel dual amylin and calcitonin receptor agonist (DACRA) for obesity treatment later this year.
The company’s pipeline also includes promising candidates for non-alcoholic steatohepatitis (NASH) and X-linked adrenoleukodystrophy (X-ALD) indications. VKTX is actively exploring partnership opportunities for these candidates, which could provide additional funding and validation.
Yet, Viking's biggest challenge lies in its lack of an approved product in its portfolio and the intense competition from pharma giants that already dominate the obesity landscape.
How Do Estimates Compare for NVO & VKTX?
The Zacks Consensus Estimate for Novo’s 2025 sales and EPS implies a year-over-year increase of around 14% and 17%, respectively. EPS estimates for both 2025 and 2026 have been trending downward over the past 60 days.
Image Source: Zacks Investment Research
Devoid of a marketed product, we expect VKTX’s 2025 loss per share to widen 120%. Loss estimates for 2025 and 2026 have widened over the past 60 days.
Image Source: Zacks Investment Research
Price Performance and Valuation of NVO & VKTX
Year to date, shares of NVO have lost about 22%, while those of VKTX have plummeted 33%. In comparison, the industry has declined 6%, as seen in the chart below.
Image Source: Zacks Investment Research
From a valuation standpoint, Novo Nordisk seems to be more expensive than Viking Therapeutics, going by the price/book (P/B) ratio. NVO’s shares currently trade at 15.46 times trailing book value, higher than 3.58 for VKTX.
Novo Nordisk remains a financially robust, dividend-paying blue-chip stock with a dominant commercial footprint in the diabetes and obesity markets. Its strong year-over-year revenues and profits, fueled by rising demand for Wegovy and Ozempic, suggest long-term potential.
Viking has its fair share of problems, like the lack of marketed drugs and the presence of pharma giants in targeted markets. Though the company has a strong cash balance to carry out its day-to-day operations for the next few years, it is highly dependent on its pipeline drugs for growth.
Hence, NVO is a safer pick at present (despite its pricey valuation) as we believe there is room for growth buoyed by solid fundamentals and recent positive uptrend in stock price movement.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Novo Nordisk vs. Viking Therapeutics: Which GLP-1 Stock Has More Upside?
Novo Nordisk (NVO - Free Report) and Viking Therapeutics (VKTX - Free Report) have emerged as notable players in the obesity space.
A market leader in the GLP-1 space, Novo Nordisk markets its semaglutide drugs under brand names Ozempic (pre-filled pen) and Rybelsus (oral tablet) for type II diabetes (T2D), and Wegovy (injection) for chronic weight management.
On the other hand, Viking Therapeutics is a clinical-stage biotech firm. Its investigational dual GIP and GLP-1 receptor agonist, VK2735, has shown blockbuster potential in early to mid-stage studies for treating obesity.
Though the comparison may seem mismatched, given the stark contrast in size and commercial maturity between the two companies, both are innovating within the same metabolic treatment space. Investors now face a key question: Should they favor the stability and proven track record of a pharmaceutical giant, or bet on a potential biotech disruptor? Let's examine the fundamentals of the two stocks to make a prudent choice.
The Case for NVO
Novo Nordisk has one of the broadest diabetes portfolios in the industry. The company continues to be the global market leader in the GLP-1 segment, with around 54% value market share as of the end of the first quarter of 2025.
Wegovy is a significant contributor to Novo Nordisk's revenues. Wegovy revenues surged 83% in first-quarter 2025 due to strong prescription growth, driving higher revenues and profits. Additionally, Ozempic sales are also contributing positively to overall revenues. NVO has been investing heavily to expand its manufacturing capacity as part of its strategic move to entrench its diabetes and obesity care market leadership for its GLP-1 products.
Following the acquisition of CDMO Catalent in late 2024, Novo Nordisk has enhanced its production capacity. The deal was primarily responsible for the removal of semaglutide products from the FDA’s shortage list. This indicates that the shortage of these products is resolved, and the agency is confident that the company can meet its current and future demand.
CVS Caremark, a major pharmacy benefit manager, recently announced that it would make Novo Nordisk’s Wegovy its preferred GLP-1 therapy for weight loss, effective July 1. NVO also announced partnerships with telehealth providers Hims & Hers Health to offer Wegovy at a discounted price to cash-paying patients. These are likely to give the company a commercial advantage in the obesity market.
Novo Nordisk is pursuing new indications for semaglutide, including label expansions for Wegovy in additional cardiovascular conditions and for Ozempic in T2D patients with chronic kidney disease. It is investigating semaglutide’s potential in metabolic dysfunction–associated steatohepatitis. These efforts could expand the eligible patient population for semaglutide and boost sales.
However, the company’s arch-rival Eli Lilly (LLY - Free Report) remains a formidable adversary in the obesity market space, which threatens its market share. LLY markets its tirzepatide injections under the brand name Mounjaro for T2D and Zepbound for obesity.
The NVO stock has also been under pressure due to disappointing data from two late-stage studies for its next-generation subcutaneous obesity candidate, CagriSema, a follow-up drug to Wegovy. In these studies, CagriSema demonstrated a lower-than-expected reduction in body weight.
The Case for VKTX
Viking is one of the few biotech stocks that has shown immense potential in this space. VK2735 has shown blockbuster potential, having demonstrated superior weight reduction capabilities in clinical studies, both as a subcutaneous (SC) injection and an oral pill.
The company started the phase II VENTURE-Oral Dosing study on the oral formulation earlier this year, with data readout expected in the second half of 2025. The company is also on track to start the late-stage study on the SC version in the second quarter of 2025.
Beyond VK2735, Viking is expanding its obesity pipeline. It plans to file an investigational new drug application to begin clinical studies on its novel dual amylin and calcitonin receptor agonist (DACRA) for obesity treatment later this year.
The company’s pipeline also includes promising candidates for non-alcoholic steatohepatitis (NASH) and X-linked adrenoleukodystrophy (X-ALD) indications. VKTX is actively exploring partnership opportunities for these candidates, which could provide additional funding and validation.
Yet, Viking's biggest challenge lies in its lack of an approved product in its portfolio and the intense competition from pharma giants that already dominate the obesity landscape.
How Do Estimates Compare for NVO & VKTX?
The Zacks Consensus Estimate for Novo’s 2025 sales and EPS implies a year-over-year increase of around 14% and 17%, respectively. EPS estimates for both 2025 and 2026 have been trending downward over the past 60 days.
Image Source: Zacks Investment Research
Devoid of a marketed product, we expect VKTX’s 2025 loss per share to widen 120%. Loss estimates for 2025 and 2026 have widened over the past 60 days.
Image Source: Zacks Investment Research
Price Performance and Valuation of NVO & VKTX
Year to date, shares of NVO have lost about 22%, while those of VKTX have plummeted 33%. In comparison, the industry has declined 6%, as seen in the chart below.
Image Source: Zacks Investment Research
From a valuation standpoint, Novo Nordisk seems to be more expensive than Viking Therapeutics, going by the price/book (P/B) ratio. NVO’s shares currently trade at 15.46 times trailing book value, higher than 3.58 for VKTX.
Image Source: Zacks Investment Research
NVO or VKTX: Which is a Better Pick?
Both Novo and Viking have a Zacks Rank #3 (Hold) each, which makes choosing one stock over the other difficult. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Novo Nordisk remains a financially robust, dividend-paying blue-chip stock with a dominant commercial footprint in the diabetes and obesity markets. Its strong year-over-year revenues and profits, fueled by rising demand for Wegovy and Ozempic, suggest long-term potential.
Viking has its fair share of problems, like the lack of marketed drugs and the presence of pharma giants in targeted markets. Though the company has a strong cash balance to carry out its day-to-day operations for the next few years, it is highly dependent on its pipeline drugs for growth.
Hence, NVO is a safer pick at present (despite its pricey valuation) as we believe there is room for growth buoyed by solid fundamentals and recent positive uptrend in stock price movement.