Intense Pharmaceutical Rivalry: Novo Nordisk vs. Eli Lilly in GLP-1 Market
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Source: Fool
- Intensifying Market Competition: Novo Nordisk's Wegovy obesity drug grew 22% in Q1 2026, while Eli Lilly's Mounjaro and Zepbound saw increases of 125% and 80%, respectively, highlighting significant performance differences in the GLP-1 market, although Novo Nordisk is still in pursuit.
- Product Innovation Advantage: The launch of Novo Nordisk's oral Wegovy pill is attracting customers who prefer not to take injections, indicating its potential in the GLP-1 space, despite Eli Lilly's dominance in market share, underscoring the importance of product innovation in customer appeal.
- Valuation and Yield Appeal: Novo Nordisk boasts a dividend yield of 4.04%, significantly higher than Eli Lilly's 0.65%, with a P/E ratio around 10x, well below the industry average, making it attractive to dividend and value investors.
- Market Outlook: Although Novo Nordisk anticipates challenges in 2026, the strong early adoption of the Wegovy pill and its ability to attract new customers suggest that long-term volume will offset short-term price declines, showcasing its market potential.
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Analyst Views on NVO
Wall Street analysts forecast NVO stock price to rise
8 Analyst Rating
4 Buy
3 Hold
1 Sell
Moderate Buy
Current: 45.510
Low
42.00
Averages
54.67
High
70.00
Current: 45.510
Low
42.00
Averages
54.67
High
70.00
About NVO
Novo Nordisk A/S is a global healthcare company engaged in diabetes care. The Company is also engaged in the discovery, development, manufacturing and marketing of pharmaceutical products. The Company operates through two business segments: diabetes and obesity care, and biopharmaceuticals. The Company's diabetes and obesity care segment covers insulin, GLP-1, other protein-related products, such as glucagon, protein-related delivery systems and needles, and oral anti-diabetic drugs. The Company's biopharmaceuticals segment covers the therapy areas of hemophilia care, growth hormone therapy and hormone replacement therapy. The Company also offers Saxenda product to treat obesity. It offers a range of products, including NovoLog/NovoRapid; NovoLog Mix/NovoMix; Prandin/NovoNorm; NovoSeven; Norditropin, and Vagifem. As of December 31, 2016, it marketed its products in over 180 countries. Its regional structure consists of two commercial units: North America and International Operations.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Eli Lilly's Market Cap Surpasses $1 Trillion Again
- Record High Stock Price: Eli Lilly (LLY) closed at $1,126.80 on May 28, marking a significant recovery with over a 25% increase since the March 30 low, reflecting strong market anticipation for its new drug Reta and solidifying its leadership in the GLP-1 market.
- Reta Drug Potential: Reta (retatrutide), Eli Lilly's next-generation obesity drug, is still awaiting approval, yet in the phase 3 TRIUMPH-1 trial, patients on the highest dose lost an average of 70.3 pounds (28.3%), indicating its potential to reshape the obesity treatment landscape and investor perceptions.
- Broad Market Impact: Investors are optimistic about the future of GLP-1 drugs, believing they could expand into various areas including obesity, diabetes, and sleep apnea, which not only drives Eli Lilly's stock price but also influences related sectors such as packaged food, alcohol, and retail stocks.
- Technical Resistance Test: Eli Lilly's stock approaches the historical high of $1,100, and a breakout above this level could re-establish record territory, further solidifying healthcare's leadership within the S&P 500, while a rejection could lead to a potential double-top pattern, increasing market uncertainty.
See More
CVS Restores Coverage for Eli Lilly's Weight Loss Drug
- Coverage Restoration: CVS Caremark will restore coverage for Eli Lilly's weight loss injection Zepbound as a preferred option starting October 1, significantly enhancing patient access and treatment options.
- New Drug Launch: Eli Lilly's newly approved obesity pill Foundayo will be available on plans from June 1, 2026, further enriching the company's portfolio in obesity treatment and strengthening its market competitiveness.
- Stock Milestone: Eli Lilly's shares hit an all-time high of $1,147.95 on Thursday, pushing its market capitalization to approximately $1.02 trillion, reflecting strong market demand for its obesity drugs and future growth potential.
- Competitive Landscape Shift: CVS's decision came after Eli Lilly agreed to lower drug prices, which will help Lilly compete more effectively with rival Novo Nordisk in the rapidly growing weight-loss market, enhancing its market share.
See More
Intense Pharmaceutical Rivalry: Novo Nordisk vs. Eli Lilly in GLP-1 Market
- Intensifying Market Competition: Novo Nordisk's Wegovy obesity drug grew 22% in Q1 2026, while Eli Lilly's Mounjaro and Zepbound saw increases of 125% and 80%, respectively, highlighting significant performance differences in the GLP-1 market, although Novo Nordisk is still in pursuit.
- Product Innovation Advantage: The launch of Novo Nordisk's oral Wegovy pill is attracting customers who prefer not to take injections, indicating its potential in the GLP-1 space, despite Eli Lilly's dominance in market share, underscoring the importance of product innovation in customer appeal.
- Valuation and Yield Appeal: Novo Nordisk boasts a dividend yield of 4.04%, significantly higher than Eli Lilly's 0.65%, with a P/E ratio around 10x, well below the industry average, making it attractive to dividend and value investors.
- Market Outlook: Although Novo Nordisk anticipates challenges in 2026, the strong early adoption of the Wegovy pill and its ability to attract new customers suggest that long-term volume will offset short-term price declines, showcasing its market potential.
See More
Competitive Analysis of Novo Nordisk and Eli Lilly
- Market Competition: In the GLP-1 weight loss drug market, Eli Lilly's sales of Mounjaro and Zepbound surged by 125% and 80% respectively, while Novo Nordisk's Wegovy business grew by 22% in Q1 2026, highlighting a significant disparity in market share between the two companies.
- Investment Attractiveness Comparison: While Eli Lilly's P/E ratio stands at 37x, significantly above the industry average of 24x, and its dividend yield is only 0.65%, Novo Nordisk offers a much more appealing P/E of around 10x and a dividend yield of 4%, making it more attractive to dividend investors.
- Product Innovation and Market Response: Novo Nordisk's newly launched Wegovy pill is perceived to be more effective than Eli Lilly's GLP-1 pill, attracting customers who prefer not to take injections, indicating its potential in the GLP-1 market despite facing challenges from price reductions in 2026.
- Investor Sentiment and Opportunity: Although Novo Nordisk is undervalued and investors are cautious about its future growth, the early strong performance of the Wegovy pill presents an opportunity for investors to enter at a lower price, particularly appealing to contrarian investors.
See More
France Becomes First EU Nation to Reimburse Weight Loss Medications
- Reimbursement Policy: France's Health Minister Stephanie Rist announced that France is the first EU nation to reimburse weight loss medications, specifically for severely obese patients, marking a significant advancement in public health policy.
- Eligibility Criteria: Under the new policy, patients with a body mass index (BMI) of at least 35 with one comorbidity or a BMI of at least 40 will qualify for coverage, potentially benefiting around one million individuals in need.
- Financial Impact Assessment: The initiative is expected to cost approximately €100 million ($116 million) annually at full rollout, imposing a financial burden on French taxpayers while potentially reducing long-term healthcare costs associated with obesity.
- Market Competition Dynamics: With this policy, weight loss medications from Novo Nordisk (NVO) and Eli Lilly (LLY) will gain broader market acceptance in France, which may influence policy decisions in other EU countries and drive overall market growth.
See More
CVS Restores Coverage for Eli Lilly's Weight Loss Drug Zepbound
- Coverage Restoration: CVS Health announced it will restore coverage for Eli Lilly's weight loss injection Zepbound on October 1 and will start covering the newly approved obesity pill Foundayo on June 1, providing patients with more treatment options and enhancing Lilly's competitive position in the weight loss drug market.
- Market Competition Balance: This move levels the playing field between Lilly and Novo Nordisk in CVS's major drug plans, especially after CVS's agreement with Novo last year that made Wegovy the preferred obesity treatment, which previously excluded Zepbound and forced patients to incur higher out-of-pocket costs.
- Potential Savings: CVS expects the restoration of coverage to drive an additional 10% to 15% savings across the weight management category, which not only helps patients reduce medication costs but may also stimulate competition in the GLP-1 drug market, facilitating successful pricing negotiations.
- Smooth Transition: CVS Caremark has committed to ensuring a smooth transition for customers, consultants, providers, and members to the newly covered therapies, reflecting CVS's leadership in the market and its proactive efforts to enhance drug affordability.
See More
Eli Lilly's Market Cap Surpasses $1 Trillion Again
- Record High Stock Price: Eli Lilly (LLY) closed at $1,126.80 on May 28, marking a significant recovery with over a 25% increase since the March 30 low, reflecting strong market anticipation for its new drug Reta and solidifying its leadership in the GLP-1 market.
- Reta Drug Potential: Reta (retatrutide), Eli Lilly's next-generation obesity drug, is still awaiting approval, yet in the phase 3 TRIUMPH-1 trial, patients on the highest dose lost an average of 70.3 pounds (28.3%), indicating its potential to reshape the obesity treatment landscape and investor perceptions.
- Broad Market Impact: Investors are optimistic about the future of GLP-1 drugs, believing they could expand into various areas including obesity, diabetes, and sleep apnea, which not only drives Eli Lilly's stock price but also influences related sectors such as packaged food, alcohol, and retail stocks.
- Technical Resistance Test: Eli Lilly's stock approaches the historical high of $1,100, and a breakout above this level could re-establish record territory, further solidifying healthcare's leadership within the S&P 500, while a rejection could lead to a potential double-top pattern, increasing market uncertainty.
See More
CVS Restores Coverage for Eli Lilly's Weight Loss Drug
- Coverage Restoration: CVS Caremark will restore coverage for Eli Lilly's weight loss injection Zepbound as a preferred option starting October 1, significantly enhancing patient access and treatment options.
- New Drug Launch: Eli Lilly's newly approved obesity pill Foundayo will be available on plans from June 1, 2026, further enriching the company's portfolio in obesity treatment and strengthening its market competitiveness.
- Stock Milestone: Eli Lilly's shares hit an all-time high of $1,147.95 on Thursday, pushing its market capitalization to approximately $1.02 trillion, reflecting strong market demand for its obesity drugs and future growth potential.
- Competitive Landscape Shift: CVS's decision came after Eli Lilly agreed to lower drug prices, which will help Lilly compete more effectively with rival Novo Nordisk in the rapidly growing weight-loss market, enhancing its market share.
See More
Intense Pharmaceutical Rivalry: Novo Nordisk vs. Eli Lilly in GLP-1 Market
- Intensifying Market Competition: Novo Nordisk's Wegovy obesity drug grew 22% in Q1 2026, while Eli Lilly's Mounjaro and Zepbound saw increases of 125% and 80%, respectively, highlighting significant performance differences in the GLP-1 market, although Novo Nordisk is still in pursuit.
- Product Innovation Advantage: The launch of Novo Nordisk's oral Wegovy pill is attracting customers who prefer not to take injections, indicating its potential in the GLP-1 space, despite Eli Lilly's dominance in market share, underscoring the importance of product innovation in customer appeal.
- Valuation and Yield Appeal: Novo Nordisk boasts a dividend yield of 4.04%, significantly higher than Eli Lilly's 0.65%, with a P/E ratio around 10x, well below the industry average, making it attractive to dividend and value investors.
- Market Outlook: Although Novo Nordisk anticipates challenges in 2026, the strong early adoption of the Wegovy pill and its ability to attract new customers suggest that long-term volume will offset short-term price declines, showcasing its market potential.
See More
Competitive Analysis of Novo Nordisk and Eli Lilly
- Market Competition: In the GLP-1 weight loss drug market, Eli Lilly's sales of Mounjaro and Zepbound surged by 125% and 80% respectively, while Novo Nordisk's Wegovy business grew by 22% in Q1 2026, highlighting a significant disparity in market share between the two companies.
- Investment Attractiveness Comparison: While Eli Lilly's P/E ratio stands at 37x, significantly above the industry average of 24x, and its dividend yield is only 0.65%, Novo Nordisk offers a much more appealing P/E of around 10x and a dividend yield of 4%, making it more attractive to dividend investors.
- Product Innovation and Market Response: Novo Nordisk's newly launched Wegovy pill is perceived to be more effective than Eli Lilly's GLP-1 pill, attracting customers who prefer not to take injections, indicating its potential in the GLP-1 market despite facing challenges from price reductions in 2026.
- Investor Sentiment and Opportunity: Although Novo Nordisk is undervalued and investors are cautious about its future growth, the early strong performance of the Wegovy pill presents an opportunity for investors to enter at a lower price, particularly appealing to contrarian investors.
See More
France Becomes First EU Nation to Reimburse Weight Loss Medications
- Reimbursement Policy: France's Health Minister Stephanie Rist announced that France is the first EU nation to reimburse weight loss medications, specifically for severely obese patients, marking a significant advancement in public health policy.
- Eligibility Criteria: Under the new policy, patients with a body mass index (BMI) of at least 35 with one comorbidity or a BMI of at least 40 will qualify for coverage, potentially benefiting around one million individuals in need.
- Financial Impact Assessment: The initiative is expected to cost approximately €100 million ($116 million) annually at full rollout, imposing a financial burden on French taxpayers while potentially reducing long-term healthcare costs associated with obesity.
- Market Competition Dynamics: With this policy, weight loss medications from Novo Nordisk (NVO) and Eli Lilly (LLY) will gain broader market acceptance in France, which may influence policy decisions in other EU countries and drive overall market growth.
See More
CVS Restores Coverage for Eli Lilly's Weight Loss Drug Zepbound
- Coverage Restoration: CVS Health announced it will restore coverage for Eli Lilly's weight loss injection Zepbound on October 1 and will start covering the newly approved obesity pill Foundayo on June 1, providing patients with more treatment options and enhancing Lilly's competitive position in the weight loss drug market.
- Market Competition Balance: This move levels the playing field between Lilly and Novo Nordisk in CVS's major drug plans, especially after CVS's agreement with Novo last year that made Wegovy the preferred obesity treatment, which previously excluded Zepbound and forced patients to incur higher out-of-pocket costs.
- Potential Savings: CVS expects the restoration of coverage to drive an additional 10% to 15% savings across the weight management category, which not only helps patients reduce medication costs but may also stimulate competition in the GLP-1 drug market, facilitating successful pricing negotiations.
- Smooth Transition: CVS Caremark has committed to ensuring a smooth transition for customers, consultants, providers, and members to the newly covered therapies, reflecting CVS's leadership in the market and its proactive efforts to enhance drug affordability.
See More
