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Can Wegovy & Ozempic Drive Another Strong Quarter for Novo Nordisk?
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Key Takeaways
NVO's Ozempic and Wegovy generated DKK 50.1B in Q1 sales, making up 66% of total revenues.
Label expansions and stronger access programs have fueled higher demand for semaglutide drugs.
NVO secured a U.S. ban on mass compounding and is expanding Wegovy access via CVS and NovoCare.
Novo Nordisk (NVO - Free Report) generates most of its revenues from the sales of its blockbuster GLP-1 injections, Ozempic for type II diabetes (T2D) and Wegovy for obesity. Ozempic and Wegovy include the same compound, semaglutide, a GLP-1 receptor agonist. Both medications have experienced rapid demand due to increased prescription rates following label expansions, which have driven up their sales.
Ozempic generated DKK 32.7 billion (up 15%), while Wegovy generated DKK 17.4 billion (up 83%) in sales in the first quarter of 2025. The combined figure accounted for around 66% of the company’s total revenues in the quarter. Despite the upward trend, the growth rates were hurt by the presence of compounded GLP-1s in the market. Investors will be most keen to know the sales numbers of these two drugs when Novo Nordisk reports second-quarter results on Aug. 6.
Following the removal of semaglutide drugs from the FDA’s shortage list in early 2025, Novo Nordisk successfully pushed for a federal ban on mass compounding of semaglutide, limiting the availability of unauthorized versions in its largest market. The company is also boosting Wegovy access through programs like the NovoCare Pharmacy and exclusive formulary coverage with CVS Caremark, alongside international expansion, which likely supported stronger second-quarter performance.
Looking ahead, further label expansions — such as Ozempic for peripheral artery disease, an oral version of Wegovy, and a higher-dose injectable version of Wegovy — are expected to fuel continued growth. Novo Nordisk is also addressing supply constraints by ramping up manufacturing capacity. Beyond Ozempic and Wegovy, its oral T2D drug Rybelsus and portfolio of insulin and rare disease treatments continue to support revenue growth.
Competition Heating Up in the Obesity Space
Eli Lilly (LLY - Free Report) is Novo Nordisk’s fierce competitor in the obesity space, which markets its tirzepatide medicines as Mounjaro for T2D and Zepbound for obesity. Despite being on the market for less than three years, both drugs have become Lilly’s key top-line drivers. In the first quarter of 2025, they generated combined sales of $6.15 billion, accounting for around 48% of Lilly’s total revenues. LLY is scheduled to release second-quarter earnings results on Aug. 7.
Several other companies, like Viking Therapeutics (VKTX - Free Report) , are also making rapid progress in the development of GLP-1-based candidates in their clinical pipeline. Recently, Viking Therapeutics started two late-stage studies evaluating the subcutaneous formulation of its investigational obesity drug, VK2735. A mid-stage study is currently ongoing, evaluating an oral version of this obesity drug, with a data readout expected later this year.
NVO’s Stock Price, Valuation & Estimates
Year to date, Novo Nordisk shares have lost 24.1% compared with the industry’s 0.1% decline. The company has also underperformed the sector and the S&P 500 during the same time frame, as seen in the chart below.
NVO Stock Underperforms the Industry, Sector & the S&P 500
Image Source: Zacks Investment Research
Novo Nordisk is trading at a premium to the industry, as seen in the chart below. Going by the price/earnings ratio, the company’s shares currently trade at 15.14 forward earnings, which is slightly higher than 15.04 for the industry. However, the stock is trading much below its five-year mean of 29.25.
NVO Stock Valuation
Image Source: Zacks Investment Research
Earnings estimates for 2025 have improved from $3.84 to $3.98 per share over the past 60 days. During the same time frame, Novo Nordisk’s 2026 earnings per share estimates have declined from $4.64 to $4.57.
NVO Estimate Movement
Image Source: Zacks Investment Research
The stock’s return on equity on a trailing 12-month basis is 80.95%, which is higher than 33.55% for the large drugmaker industry, as seen in the chart below.
Image: Shutterstock
Can Wegovy & Ozempic Drive Another Strong Quarter for Novo Nordisk?
Key Takeaways
Novo Nordisk (NVO - Free Report) generates most of its revenues from the sales of its blockbuster GLP-1 injections, Ozempic for type II diabetes (T2D) and Wegovy for obesity. Ozempic and Wegovy include the same compound, semaglutide, a GLP-1 receptor agonist. Both medications have experienced rapid demand due to increased prescription rates following label expansions, which have driven up their sales.
Ozempic generated DKK 32.7 billion (up 15%), while Wegovy generated DKK 17.4 billion (up 83%) in sales in the first quarter of 2025. The combined figure accounted for around 66% of the company’s total revenues in the quarter. Despite the upward trend, the growth rates were hurt by the presence of compounded GLP-1s in the market. Investors will be most keen to know the sales numbers of these two drugs when Novo Nordisk reports second-quarter results on Aug. 6.
Following the removal of semaglutide drugs from the FDA’s shortage list in early 2025, Novo Nordisk successfully pushed for a federal ban on mass compounding of semaglutide, limiting the availability of unauthorized versions in its largest market. The company is also boosting Wegovy access through programs like the NovoCare Pharmacy and exclusive formulary coverage with CVS Caremark, alongside international expansion, which likely supported stronger second-quarter performance.
Looking ahead, further label expansions — such as Ozempic for peripheral artery disease, an oral version of Wegovy, and a higher-dose injectable version of Wegovy — are expected to fuel continued growth. Novo Nordisk is also addressing supply constraints by ramping up manufacturing capacity. Beyond Ozempic and Wegovy, its oral T2D drug Rybelsus and portfolio of insulin and rare disease treatments continue to support revenue growth.
Competition Heating Up in the Obesity Space
Eli Lilly (LLY - Free Report) is Novo Nordisk’s fierce competitor in the obesity space, which markets its tirzepatide medicines as Mounjaro for T2D and Zepbound for obesity. Despite being on the market for less than three years, both drugs have become Lilly’s key top-line drivers. In the first quarter of 2025, they generated combined sales of $6.15 billion, accounting for around 48% of Lilly’s total revenues. LLY is scheduled to release second-quarter earnings results on Aug. 7.
Several other companies, like Viking Therapeutics (VKTX - Free Report) , are also making rapid progress in the development of GLP-1-based candidates in their clinical pipeline. Recently, Viking Therapeutics started two late-stage studies evaluating the subcutaneous formulation of its investigational obesity drug, VK2735. A mid-stage study is currently ongoing, evaluating an oral version of this obesity drug, with a data readout expected later this year.
NVO’s Stock Price, Valuation & Estimates
Year to date, Novo Nordisk shares have lost 24.1% compared with the industry’s 0.1% decline. The company has also underperformed the sector and the S&P 500 during the same time frame, as seen in the chart below.
NVO Stock Underperforms the Industry, Sector & the S&P 500
Novo Nordisk is trading at a premium to the industry, as seen in the chart below. Going by the price/earnings ratio, the company’s shares currently trade at 15.14 forward earnings, which is slightly higher than 15.04 for the industry. However, the stock is trading much below its five-year mean of 29.25.
NVO Stock Valuation
Earnings estimates for 2025 have improved from $3.84 to $3.98 per share over the past 60 days. During the same time frame, Novo Nordisk’s 2026 earnings per share estimates have declined from $4.64 to $4.57.
NVO Estimate Movement
The stock’s return on equity on a trailing 12-month basis is 80.95%, which is higher than 33.55% for the large drugmaker industry, as seen in the chart below.
NVO Return on Equity
Novo Nordisk currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.