Novo Nordisk Stock Rebounds as New Weight-Loss Pill Fuels Growth Hopes

COPENHAGEN, 19 January 2026 – Novo Nordisk A/S, the Danish pharmaceutical giant, is witnessing a significant shift in investor sentiment in the new year. After a brutal sell-off in 2025 that erased over half of its market value, the maker of Ozempic and Wegovy is staging a comeback, driven by the successful early launch of its groundbreaking oral weight-loss drug and a wave of analyst upgrades. The stock has surged nearly 20% in January 2026 alone, though it remains far below its 2024 peak.

Oral Wegovy Off to a “Solid” Start

The primary catalyst for the renewed optimism is the launch of Novo Nordisk’s oral formulation of semaglutide, the active ingredient in Wegovy and Ozempic. Approved by the U.S. Food and Drug Administration in late 2025, the once-daily pill began a limited rollout in the United States shortly after. Early prescription data has been encouraging, with reports indicating the pill garnered 3,071 U.S. prescriptions in its first four days of availability. This strong initial uptake suggests the more convenient pill format could significantly expand access to GLP-1 therapies, a market projected to reach $150 billion by 2034.

Concurrently, the company received a boost from the UK’s Medicines and Healthcare products Regulatory Agency (MHRA), which approved a higher, 7.2 mg weekly dose of injectable Wegovy for weight management.

Analysts See Value Amidst the Chaos

The dramatic share price decline in 2025 has led several analysts to reassess the stock’s valuation. While some remain cautious, others see a compelling buying opportunity. Kepler Cheuvreux named Novo Nordisk its “Sector Most Preferred Stock” in European pharmaceuticals on 16 January 2026, despite cutting its price target to DKK 430 from DKK 510. The firm cited the oral semaglutide launch as a “huge opportunity” to transform market sentiment.

This view was echoed by Deutsche Bank and Berenberg Bank, which both issued Buy ratings on the stock in mid-January. The consensus among covering analysts is a “Moderate Buy,” with price targets implying significant upside from current levels, according to data from MarketBeat.

Strategic Moves and CEO Outlook

Under the leadership of CEO Maziar “Mike” Doustdar, who took over in August 2025, Novo Nordisk is actively defending its position in the lucrative obesity and metabolic health market. A key strategic move was the agreement to acquire Akero Therapeutics for approximately $4.7 billion. The deal, expected to close in early 2026, gives Novo Nordisk access to a promising drug for metabolic dysfunction-associated steatohepatitis (MASH), a liver disease closely linked to obesity.

Speaking at the J.P. Morgan Healthcare Conference in January 2026, CEO Doustdar struck a balanced tone. He acknowledged that 2026 would be a year of “price pressure” as GLP-1 supply increases and competition intensifies, particularly from rival Eli Lilly. However, he also emphasised the strong underlying demand and the expanding therapeutic benefits of GLP-1 drugs, including proven cardiovascular advantages.

Key Financials and Stock Metrics

Frequently Asked Questions

Why did Novo Nordisk stock fall so much in 2025?

The stock’s decline was driven by multiple factors: intense competition from Eli Lilly’s rival drugs (Mounjaro/Zepbound), the proliferation of cheaper, unapproved compounded versions of semaglutide in the US, concerns over future US drug price negotiations and potential tariffs, and a general reassessment of its previously sky-high valuation after a 300% rally in the preceding years.

What are the main risks for Novo Nordisk in 2026?

The primary risks include sustained competitive pressure from Eli Lilly, potential US tariff impacts on pharmaceutical imports, increased price pressure on GLP-1 drugs, and the commercial execution of the oral Wegovy launch. The company also faces the ongoing challenge of unauthorised compounded drugs in the US market.

Is the oral Wegovy pill as effective as the injection?

While both contain the same active ingredient (semaglutide), the efficacy profiles may differ. The oral version’s convenience is expected to drive adoption, but its long-term weight-loss results compared to the injectable form are still being closely watched by clinicians and investors. Early patient preference is strongly for the pill format.

How does Novo Nordisk’s valuation compare to Eli Lilly’s?

As of January 2026, Novo Nordisk trades at a significantly lower price-to-earnings (P/E) multiple than Eli Lilly (approximately 16x vs. over 40x for Lilly). This discount reflects the market’s greater concerns about competitive dynamics and near-term headwinds for Novo Nordisk, while awarding Lilly a premium for its perceived stronger market position and pipeline.