Novo Nordisk (NVO Quick QuoteNVO - Free Report) shares have climbed 7% over the past week as investors responded to a series of favorable regulatory and commercial updates, reinforcing NVO’s position in the obesity market.

A key catalyst was the U.K. approval of the Wegovy pill (oral semaglutide 25 mg) for chronic weight management in obese adults. The authorization makes the United Kingdom the first European country to approve a daily GLP-1 weight-loss pill, extending Novo Nordisk's obesity portfolio beyond injectable therapies. The approval also marks the third regulatory nod for the oral formulation, following approvals in the United States and the UAE, supporting NVO’s efforts to reach patients who may prefer a pill over weekly injections.

Investor sentiment has also been supported by the strong commercial performance of the Wegovy pill in the United States. Since its launch in early 2026, the therapy has surpassed three million prescriptions in just over five months, with more than 80% of prescriptions coming from patients who had not previously used a GLP-1 medicine. The trend suggests the oral formulation may be expanding the addressable obesity-treatment market rather than simply shifting patients from injectable therapies.

While recent events have improved sentiment toward NVO, the company continues to face significant headwinds, including U.S. pricing pressure, softer prescription trends for injectable GLP-1 therapies, reduced Medicaid coverage for obesity treatments and intensifying competition from Eli Lilly (LLY Quick QuoteLLY - Free Report) . Additional overhangs include the proposed “Most Favored Nation” pricing framework, the gradual erosion of semaglutide exclusivity in certain markets and elevated investments in R&D, manufacturing capacity and commercial expansion.

Although Novo Nordisk raised its guidance following first-quarter results, the broader outlook remains cautious, with management still projecting declines in both sales and operating profit in 2026, highlighting persistent pressure on the core business and growing structural challenges. Let's delve deeper to better understand NVO’s key strengths against its near-term challenges.

Semaglutide — Still NVO’s Primary Top-Line Driver

Novo Nordisk’s growth continues to be driven by its semaglutide franchise — Ozempic, Wegovy and Rybelsus — which forms the backbone of one of the industry’s broadest diabetes and obesity portfolios. Ozempic and Wegovy remain the company’s key revenue generators, while expanded distribution agreements with major U.S. pharmacies, telehealth providers and other platforms have improved access to authentic FDA-approved Wegovy and largely addressed the compounded-drug challenge.

The company is broadening semaglutide’s commercial opportunity through multiple label expansions. Wegovy is now approved not only for obesity but also for reducing major cardiovascular events, improving HFpEF symptoms and easing obesity-related knee pain from osteoarthritis. Novo Nordisk has also secured approvals for higher-dose Wegovy injections in the United States and Europe and launched oral Wegovy, the first GLP-1 pill for weight management, in the United States, with additional international launches expected later this year.

Novo Nordisk is also strengthening its diabetes franchise. Ozempic remains the only GLP-1 approved to slow kidney disease progression and reduce cardiovascular death in T2D patients, while additional label expansions are being pursued in peripheral artery disease. Rybelsus has been approved for cardiovascular-risk reduction in T2D patients in the United States and Europe, and the company recently launched oral Ozempic for adults with T2D. Positive late-stage data in pediatric T2D and planned label-expansion filings for both Rybelsus and oral Ozempic could further expand the reach of its oral GLP-1 portfolio.

NVO’s Competition Heating Up in the Obesity Space

Competition in obesity treatment is intensifying as Eli Lilly has emerged as Novo Nordisk’s biggest rival. Lilly now competes in both injectable and oral obesity therapies with Zepbound (tirzepatide) and the recently launched oral GLP-1 drug, Foundayo (orforglipron). LLY has further strengthened its position by securing broader reimbursement support from major U.S. pharmacy benefit managers, including CVS Caremark, which should improve patient access and support prescription growth.

While NVO gained a first-mover advantage with the January 2026 launch of the Wegovy pill, maintaining that lead may prove challenging. LLY’s Foundayo offers greater convenience with no food restrictions, whereas oral Wegovy must be taken on an empty stomach. However, Wegovy appears to have a more favorable safety and tolerability profile, with fewer gastrointestinal side effects, creating a competitive trade-off that could influence physician and patient preferences.

The obesity space has garnered much of the spotlight over the past year due to the sizeable and still underpenetrated market opportunity. Smaller biotech firms, like Viking Therapeutics (VKTX Quick QuoteVKTX - Free Report) and Structure Therapeutics (GPCR Quick QuoteGPCR - Free Report) , are also advancing GLP-1–based therapies to challenge the incumbents. Viking Therapeutics’ dual GIPR/GLP-1 receptor agonist, VK2735, is being developed both as oral and subcutaneous formulations for the treatment of obesity. Viking Therapeutics plans to advance oral VK2735 into phase III development for obesity in the fourth quarter of 2026. Structure Therapeutics’ phase II ACCESS study on its orally administered GLP-1 RA, aleniglipron, demonstrated significant weight loss across all doses. Structure Therapeutics expects to initiate the late-stage program of aleniglipron in obesity in the second half of 2026.

NVO Expands Footprint in Rare Diseases and Liver Care

Beyond its GLP-1 portfolio, Novo Nordisk is broadening its presence in rare diseases. The company has submitted a regulatory filing seeking approval for Mim8 in hemophilia A in the United States. NVO has also secured both EU and U.S. approvals for Alhemo to treat hemophilia A and B, with or without inhibitors.

The FDA has also granted accelerated approval to Wegovy as the first GLP-1 therapy to treat noncirrhotic metabolic dysfunction-associated steatohepatitis with moderate-to-advanced liver fibrosis. This marked a significant milestone in liver care by offering patients a treatment that can both halt disease activity and reverse liver damage.

NVO Focuses on Next-Generation Drugs

Novo Nordisk is also developing several next-generation obesity candidates in its pipeline, especially targeting the lucrative U.S. market. NVO has submitted a regulatory filing seeking the approval of CagriSema injection, a follow-up drug to Wegovy, for obesity. It is also gearing up to launch a dedicated late-stage program evaluating cagrilintide as a monotherapy for obesity.

Meanwhile, Novo Nordisk’s mid-stage asset, amycretin, has shown strong weight-loss efficacy in a phase II study and is slated to enter phase III soon. The company has bolstered its pipeline through several major collaborations and acquisition deals.

NVO also received FDA approval for Awiqli, the first once-weekly long-acting basal insulin (icodec) for adults with T2D, to be used alongside diet and exercise for glycemic control. Already approved in several global markets, the drug’s U.S. clearance further strengthens its diabetes portfolio and reinforces its position in the treatment landscape.

NVO’s Stock Price, Valuation & Estimates

Year to date, Novo Nordisk shares have lost 13.7% against the industry’s 5.4% growth. 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 discount to the industry, as seen in the chart below. Going by the price/earnings ratio, the company’s shares currently trade at 12.77 forward earnings, which is lower than 17.81 for the industry. The stock is trading much below its five-year mean of 29.25.

NVO Stock Valuation

Image Source: Zacks Investment Research

Earnings estimates for 2026 have deteriorated from $3.47 to $3.45 per share over the past 30 days. During the same time frame, Novo Nordisk’s 2027 earnings estimates have decreased from $3.45 to $3.42.

NVO Estimate Movement

Image Source: Zacks Investment Research

Here’s How to Play NVO Stock

Despite the recent rally driven by regulatory wins and positive commercial updates, Novo Nordisk, currently carrying a Zacks Rank #3 (Hold), still faces several near-term challenges. Rising competition from Eli Lilly in both injectable and oral obesity treatments, persistent U.S. pricing pressure, shifting reimbursement trends and management’s expectation of lower sales and operating profit in 2026 could continue to weigh on sentiment. Although the stock appears attractively valued relative to historical levels and peers, earnings estimate cuts and limited visibility into market-share and pricing trends make NVO less appealing for investors seeking near- to medium-term gains. A clearer view of competitive dynamics and the commercial potential of its next-generation obesity portfolio may be needed before a stronger near-term investment case emerges. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

For long-term investors, however, the thesis remains intact. Novo Nordisk continues to command one of the industry’s broadest cardiometabolic franchises, anchored by semaglutide and backed by a deep pipeline across obesity, diabetes, cardiovascular disease, liver disease and rare disorders. NVO is also advancing key growth drivers such as CagriSema, amycretin and oral formulations that could reinforce its leadership over the coming decade. Existing shareholders may consider holding the stock for long-term value creation, while new investors could benefit from accumulating shares during pullbacks rather than chasing short-term rallies.