Key Takeaways:
Novo Nordisk (NVO) jumped 7% after its chief executive said 80% of patients taking its new Wegovy pill are new to obesity drugs, a sign of market expansion that prompted the Danish drugmaker to raise its 2026 outlook.
"Wegovy is driving a strong start to 2026 for Novo Nordisk, led by the rapid adoption of Wegovy pill — the most efficacious GLP-1 tablet now used by more than one million patients since its January launch,” CEO Mike Doustdar said in a statement.
The company now expects adjusted sales and operating profit to decline between 4% and 12% at constant exchange rates, an improvement from prior guidance that forecast a potential 13% decline. Total prescriptions for the Wegovy pill have exceeded 2 million since its January launch, including 1.3 million prescriptions during the first quarter alone.
The strong uptake from new patients is critical for Novo as it battles rival Eli Lilly (LLY) in the booming weight-loss market. The data suggests the convenience of a pill is expanding the market beyond patients willing to use injections, a crucial factor that could help offset mounting pricing pressure across the GLP-1 drug class.
The blockbuster launch of the oral version of Wegovy has reinvigorated investor confidence after a difficult year. The company reported first-quarter sales for the pill reached 2.26 billion Danish kroner, nearly doubling analyst forecasts.
This performance comes as Novo seeks to defend its market share against intensifying competition from Eli Lilly, whose Zepbound injection has gained popularity. The rivalry heated up further in April after Lilly launched its own oral obesity pill, Foundayo, setting up a direct head-to-head battle. Despite the competition, retail investor sentiment on platforms like Stocktwits turned ‘extremely bullish’ following the announcement, with message volumes surging 430%.
The success of the Wegovy pill highlights a strategic pivot for Novo Nordisk, which has aggressively marketed the oral treatment through telehealth partnerships and national advertising campaigns. The company noted that many early users were entirely new to GLP-1 drugs, underscoring the appeal of a pill to patients who are unwilling to use injections.
While the initial launch has exceeded expectations, analysts caution that strong prescription volumes may not translate directly into revenue, as many patients start on cheaper, lower doses. The key test will be whether Novo can successfully transition patients to higher, more profitable doses over time, especially with Lilly's Foundayo now in the market. Still, at a price-to-earnings ratio of 13.8x, Novo Nordisk trades at nearly half the valuation of Eli Lilly, which trades at 26.9x P/E, suggesting to some investors that the stock may be undervalued if it can maintain its momentum.
This article is for informational purposes only and does not constitute investment advice.
