Both Novo Nordisk (NVO Quick QuoteNVO - Free Report) and Amgen (AMGN Quick QuoteAMGN - Free Report) are large-cap, innovation-driven healthcare leaders with global scale, strong balance sheets, and a track record of turning scientific breakthroughs into blockbuster medicines. They benefit from steady global demand, strong pricing power, and deep research budgets that help them develop new drugs and extend product lifecycles. This makes both stocks appealing as relatively resilient plays within the healthcare sector.

NVO is widely recognized as the market leader in the GLP-1 space, marketing 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, Amgen boasts a strong presence in oncology, cardiovascular (CV) disease, inflammation, bone health, and rare disease markets. It has some key pipeline assets, with a focus on the lead obesity candidate, MariTide.

The key comparison comes down to focus on growth versus diversification. Novo Nordisk is heavily focused on diabetes and obesity treatments, giving it strong momentum tied to a single, fast-growing market. However, Amgen spreads its business across multiple therapeutic areas, which can reduce risk and support consistent cash flow. This faceoff is ideal for investors deciding whether to prioritize concentrated growth potential or a more balanced, income-friendly biotech strategy.

Let's examine the fundamentals of the two stocks to make a prudent choice.

The Case for NVO Stock

Novo Nordisk has achieved tremendous success in the cardiometabolic treatment space, all thanks to its semaglutide medicines, Ozempic, Rybelsus and Wegovy, which are its primary top-line drivers. As of September 2025-end, Novo Nordisk remained the market leader with a total GLP-1 volume market share of 59% globally, across diabetes and obesity care.

NVO has been investing heavily to expand its manufacturing capacity as part of its strategic move to strengthen its leadership in the diabetes and obesity care market for its GLP-1 products.

Novo Nordisk is pursuing new indications for its semaglutide drugs, including CV and other indications. Rybelsus recently became the first oral therapy approved in the United States to lower the risk of major adverse CV events in high-risk T2D patients, regardless of prior CV history. Wegovy’s label includes CV, HFpEF, and osteoarthritis indications, while Ozempic remains the only GLP-1 approved to slow kidney disease and reduce CV death in patients with diabetes. Higher-dose Wegovy injections are also under review in the United States and EU, and NVO is seeking to expand Ozempic’s label to include peripheral artery disease.

The FDA has also approved NVO’s 25 mg oral semaglutide (Wegovy pill) for obesity and CV disease, marking the first GLP-1 pill approved in the United States. With its launch expected soon, the therapy could significantly expand access beyond injectables and unlock a new growth driver for the company.

Novo Nordisk is advancing its next-generation obesity pipeline. It recently submitted a regulatory filing seeking the approval of CagriSema injection, a follow-up drug to Wegovy, for obesity. Meanwhile, its mid-stage asset, amycretin, recently showed strong weight-loss efficacy in a phase II study and is slated to enter phase III in 2026. The company has bolstered its pipeline through several major collaborations and acquisition deals.

Beyond GLP-1s, NVO is building its Rare Disease franchise, advancing Mim8 in hemophilia A, and securing both EU and U.S. approvals for Alhemo to treat hemophilia A and B, with or without inhibitors. Meanwhile, the FDA has granted accelerated approval for Wegovy in treating MASH with fibrosis. Novo Nordisk and rival Eli Lilly (LLY Quick QuoteLLY - Free Report) signed drug pricing agreements with the Trump administration last month, offering to cut prices of their respective GLP-1 medicines in exchange for Medicare access for the drugs and a three-year exemption from tariffs on pharmaceutical imports.

However, Novo Nordisk has been facing rising competitive and operational headwinds. Weaker-than-expected sales of Ozempic and Wegovy have weighed on growth, driven by intensifying competition from Eli Lilly’s tirzepatide-based therapies — Mounjaro for T2D and Zepbound for obesity — as well as the growing use of compounded semaglutide in the United States. These pressures have already led to two downward revisions to 2025 guidance, underscoring the near-term challenges facing the franchise. To streamline operations, NVO also announced a restructuring program in September, including job cuts, aimed at delivering about DKK 8 billion in annual savings by 2026.

The Case for AMGN Stock

Amgen’s diverse portfolio and global reach position it well in a changing pharma landscape. Key medicines like Evenity, Repatha and Blincyto, as well as newer medicines like Tavneos and Tezspire, are driving sales, more than offsetting declining revenues from oncology biosimilars and mature products like Enbrel. New biosimilar launches are also contributing to top-line growth.

The 2023 acquisition of Horizon Therapeutics has significantly expanded Amgen's rare disease business by adding several rare disease drugs, including Tepezza, Krystexxa and Uplizna, to its portfolio. Amgen is also pursuing label expansions for its marketed drugs to broaden their approved uses and expand the addressable patient population.

Amgen’s key pipeline candidate is GIPR/GLP-1 receptor MariTide, which is being evaluated for obesity as part of its comprehensive MARITIME phase III program. Enrollment has been completed in two phase III studies, MARITIME-1 and MARITIME-2, evaluating MariTide in patients with obesity, with or without T2D, respectively. Enrollment is ongoing in two other phase III studies, MARITIME-CV and MARITIME-HF, for the study of atherosclerotic CV disease and heart failure, respectively. Amgen also recently initiated two other phase III studies of the candidate in obstructive sleep apnea. 

Unlike the currently marketed obesity drugs like Eli Lilly’s Zepbound and Novo Nordisk’s Wegovy, which require weekly injections, MariTide is being tested for monthly dosing. A less frequent dosing regimen is expected to reduce treatment burden and thereby boost patient adherence. In prior clinical studies, the candidate has shown predictable and sustained weight loss and a meaningful impact on cardiometabolic parameters.

Beyond obesity, Amgen has promising late-stage pipeline drugs across several therapeutic areas, which represent significant commercial potential. These include bemarituzumab (for first-line gastric cancer), rocatinlimab (for eczema and prurigo nodularis) and olpasiran (for atherosclerotic CV disease).

Amgen also boasts a strong biosimilars portfolio, which includes Bekemv (biosimilar of AstraZeneca’s Soliris), Wezlana (J&J’s Stelara) and Pavblu (Regeneron’s Eylea). It is also developing biosimilar versions of blockbuster oncology drugs like Bristol Myers’ Opdivo, Merck’s Keytruda and Roche’s Ocrevus in phase III studies.

However, pricing headwinds and competitive pressure are negatively impacting the sales of many products. Sales of best-selling drugs, Prolia and Xgeva, are expected to decline in the upcoming quarters due to generic erosion following the loss of patent protection.

How Do Estimates Compare for NVO & AMGN?

The Zacks Consensus Estimate for Novo Nordisk’s 2025 sales and earnings per share (EPS) implies a year-over-year increase of 13.72% and 8.84%, respectively. EPS estimates for both 2025 and 2026 have been trending downward over the past 60 days.

NVO Estimate Movement

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Amgen’s 2025 sales and EPS implies a year-over-year increase of 8.78% and 7.21%, respectively. AMGN’s EPS estimates, on the other hand, have been trending upward over the past 60 days for both 2025 and 2026.

AMGN Estimate Movement

Image Source: Zacks Investment Research

Price Performance and Valuation of NVO & AMGN

In the past six months, shares of NVO have plummeted 32%, while those of AMGN have gained 19.6%. In comparison, the industry has gained 19.3%, as seen in the chart below.

Image Source: Zacks Investment Research

From a valuation standpoint, Amgen is more expensive than Novo Nordisk, going by the price/earnings ratio. NVO’s shares currently trade at 13.53 times forward earnings, lower than 15.33 for AMGN.

Image Source: Zacks Investment Research

NVO vs. AMGN: Which Stock Holds the Edge?

Novo Nordisk carries a Zacks Rank #5 (Strong Sell), whereas Amgen carries a Zacks Rank #3 (Hold) at present, which makes AMGN stock the clear winner.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Novo Nordisk has faced significant market turbulence in recent months as it navigates multiple near-term headwinds, including intensifying competition from Eli Lilly, the growing presence of compounded semaglutide alternatives, recent guidance cuts, and leadership transitions. Together, these pressures have dampened investor sentiment and driven a sharp decline in the company’s share price over the past six months. Until NVO demonstrates renewed demand momentum, stabilizes market share, and shows that restructuring can meaningfully improve margins, investors would be better served by reducing exposure or selling the stock outright.

Amgen stands out as the better choice for investors seeking stability and balance. Its business is diversified across different therapeutic areas, which reduces reliance on any single drug or market. This supports steadier cash flows and lowers risk. Earnings estimates for 2025 and 2026 are moving higher, signaling improving fundamentals. The stock has also outperformed in recent months, reflecting stronger investor confidence. With a deep late-stage pipeline, a growing rare-disease franchise, and a more predictable outlook, Amgen offers a more dependable risk-reward profile than Novo Nordisk at this stage.