Last week, Novo Nordisk (NVO Quick QuoteNVO - Free Report) secured a key regulatory win with the U.K. approval of the Wegovy pill (oral semaglutide 25 mg) for chronic weight management, making the United Kingdom the first country in Europe to authorize the daily oral GLP-1 obesity treatment. The approval is significant because it marks the first European launch opportunity for the Wegovy pill and provides patients with a non-injectable alternative for obesity treatment.

The approval represents an important commercial milestone for Novo Nordisk as it expands the Wegovy pill’s footprint beyond the United States and the UAE. A marketing application seeking EU approval of the Wegovy pill for obesity and reducing cardiovascular risks is also currently under regulatory review. Importantly, the EU regulator’s advisory committee recently adopted a positive opinion recommending its approval. If authorized, Wegovy could become the first oral GLP-1 therapy approved for weight management across the EU, significantly broadening patient access and creating a new growth avenue for Novo Nordisk. The company expects to launch the medicine in the first markets outside the United States in the second half of 2026.

The latest regulatory success comes at a crucial time for Novo Nordisk. Despite raising its 2026 guidance following first-quarter results, management still expects sales and operating profit to decline as the company grapples with pricing pressure, softer prescription trends, lower Medicaid coverage, exclusivity losses, higher spending and intensifying competition from Eli Lilly (LLY Quick QuoteLLY - Free Report) . While growing GLP-1 demand and broader adoption of obesity drugs remain supportive, investors continue to question Novo Nordisk’s ability to sustain growth amid mounting competitive pressures.

Novo Nordisk continues to broaden semaglutide’s footprint in Europe beyond the Wegovy pill. Wegovy injection has already secured EU approvals for reducing major cardiovascular events, improving HFpEF symptoms and alleviating obesity-related knee pain from osteoarthritis. The company has also won approval for a higher 7.2 mg Wegovy dose, while a single-dose pen version is under regulatory review and could launch in the third quarter of 2026.

The expansion strategy extends across Novo Nordisk’s diabetes franchise as well. Ozempic’s EU label has been expanded to include cardiovascular risk reduction in adults with type II diabetes (T2D), cardiovascular disease and chronic kidney disease, with additional filings seeking approvals for peripheral artery disease and an oral formulation. Meanwhile, Rybelsus has achieved a cardiovascular outcomes label expansion and remains the only oral GLP-1 therapy approved for T2D with proven cardiovascular benefits. Novo Nordisk also plans label expansion filings for both Rybelsus and oral Ozempic in pediatric T2D. These initiatives could support patient growth and help cushion pricing and competitive pressures, even as Eli Lilly continues to gain ground in the obesity market.

Competition Heating Up in the GLP-1 Space for NVO

Competition in the cardiometabolic market is a major overhang for NVO. Eli Lilly continues to strengthen its position in the obesity and diabetes markets through robust worldwide volume growth of its tirzepatide (GLP-1) medicines, including Mounjaro for T2D and Zepbound for obesity, challenging Novo Nordisk’s ability to defend market share and maintain pricing power over time.

Competition is particularly intense in the oral obesity drug market. In April, Eli Lilly secured FDA approval and launched its oral GLP-1 therapy, Foundayo (orforglipron), in the United States, creating a direct rival to Novo Nordisk’s Wegovy pill. Lilly is also seeking EU approval for orforglipron in adults with obesity or overweight and weight-related medical conditions, with a regulatory decision expected in 2027. Should Novo Nordisk secure EU approval for oral Wegovy ahead of Lilly, it could gain a valuable first-mover advantage and establish a stronger market presence before competition intensifies further.

The GLP-1 space is also attracting new contenders to challenge the incumbents. 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’s Stock Price, Valuation & Estimates

Year to date, Novo Nordisk shares have lost 14.4% against the industry’s 3.8% 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 12.66 forward earnings, which is lower than 17.49 for the industry. The stock is trading much below its five-year mean of 29.25.

NVO Stock’s 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 per share.

NVO’s Estimate Movement

Image Source: Zacks Investment Research

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.