Novo Nordisk Faces Sales Decline Amid Market Competition
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 04 2026
0mins
Should l Buy NVO?
Source: CNBC
Novo Nordisk's stock rose by 5.50% in pre-market trading, crossing above its 5-day SMA, despite broader market weakness with the Nasdaq-100 down 0.29% and the S&P 500 down 0.09%.
The company has warned of a potential sales decline of 5% to 13% for 2026, contrasting sharply with Eli Lilly's projected 25% sales increase. This competitive landscape is exacerbated by Eli Lilly's superior drug efficacy and anticipated expanded Medicare coverage for obesity treatments, which could significantly enhance their market share. Additionally, Novo Nordisk's recent profit warning has raised concerns about its future performance, indicating a challenging environment ahead.
As Novo Nordisk navigates these competitive pressures, the market's reaction reflects investor sentiment regarding its ability to maintain profitability in a rapidly evolving pharmaceutical landscape.
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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: 49.370
Low
42.00
Averages
54.67
High
70.00
Current: 49.370
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.
European Commission Approves Novo Nordisk's New Wegovy Dosage
- New Dosage Approval: Novo Nordisk announced that its 7.2 mg weight-loss drug Wegovy has been approved by the European Commission, allowing sales across 27 EU countries as a once-weekly maintenance dose for adults needing additional weight loss, which is expected to significantly enhance market share.
- Market Expansion: The approval follows a positive opinion from the European Medicines Agency's expert panel in December, indicating strengthened competitiveness in the weight-loss drug market and laying the groundwork for future promotions in other regions.
- U.S. Approval Process: Wegovy 7.2 mg is already approved in the U.K., and Novo Nordisk is currently submitting a supplemental New Drug Application to the FDA, which, if approved, will further expand its influence in the U.S. market and is expected to drive overall company performance growth.
- Shareholder Return Plan: The Novo Nordisk board proposed a final dividend of DKK 7.95 for 2025 and initiated a DKK 15 billion stock buyback plan, demonstrating the company's confidence in future growth and commitment to shareholders.
See More
Novo Nordisk's 7.2 mg Weight Loss Drug Approved
- Clinical Trial Results: In the STEP UP study, adults on the 7.2 mg dose lost about 21% of their body weight over 18 months, compared to roughly 2% for the placebo group, demonstrating significant weight loss efficacy and enhancing the drug's market potential.
- Increased Dosage Flexibility: The newly approved 7.2 mg dose allows doctors to prescribe it as three 2.4 mg injections taken together once a week, providing healthcare professionals with greater flexibility to help obesity patients achieve their weight loss and health goals.
- Market Supply Strategy: Novo Nordisk plans to gradually roll out Wegovy pills to prevent shortages and avoid a repeat of the compounding market that emerged during the injectable semaglutide shortage, ensuring full supply in the U.S. before expanding to other regions.
- Legal Action Update: The company recently sued Hims & Hers Health for selling compounded versions of semaglutide, seeking a permanent ban, reflecting Novo Nordisk's proactive stance in protecting its intellectual property.
See More
Viking Therapeutics Targets Weight Loss Drug Market Growth
- Clinical Trial Progress: Viking Therapeutics is advancing its VK2735 candidate in a phase 3 trial for the injectable format while planning to initiate a phase 3 trial for the oral format in Q3 this year, marking a proactive approach in the weight loss drug market that could establish a competitive foundation for future growth.
- Significant Market Potential: Analysts project that the obesity drug market could reach nearly $100 billion by 2030, providing ample growth opportunities for newcomers like Viking, especially as demand for GLP-1 drugs continues to rise.
- Diversified Product Pipeline: Viking plans to file a request to initiate clinical trials for another dual amylin and calcitonin receptor agonist in Q1, demonstrating the company's strategy to diversify its weight loss drug development to cater to various patient needs.
- Investment Risk Consideration: While Viking's candidate shows promising data, investors should cautiously assess risks since the company has no products on the market yet, and uncertainty may persist until clinical trial outcomes are confirmed.
See More
Novo Nordisk's CagriSema Shows Promising Potential
- Intensifying Market Competition: Novo Nordisk faces fierce competition in the GLP-1 market from Eli Lilly, as Ozempic has been a key growth driver, but the company anticipates declining sales this year, highlighting the urgent need for next-generation therapies to regain market share.
- CagriSema Clinical Trial Success: CagriSema outperformed Wegovy in a phase 3 clinical trial for overweight or obese patients, achieving an average weight reduction of 22.7% after 68 weeks, indicating its potential in weight loss treatment and possibly providing a new growth avenue for Novo Nordisk.
- Regulatory Application Progress: Novo Nordisk has submitted regulatory applications for CagriSema as a weight loss treatment and plans to seek approval for the diabetes indication after completing two additional phase 3 studies, paving the way for future revenue growth.
- Manufacturing Complexity Challenges: Despite CagriSema's efficacy over Ozempic, its higher production costs and complexity compared to semaglutide, along with competition from Eli Lilly's retatrutide, may impact its market performance and overall business outlook.
See More
Investment Potential of Novo Nordisk and AbbVie
- Novo Nordisk Growth Potential: Novo Nordisk's diabetes and obesity care drugs saw a 7% sales increase in fiscal 2025, with obesity care drugs surging by 26%, and experts predict the GLP-1 market will reach $254 billion by 2034, reflecting a robust long-term growth outlook.
- Attractive Valuation: Currently trading at a price-to-earnings ratio of 13, Novo Nordisk's stock price is $49.55, allowing a $500 investment to purchase 10 shares, making it an ideal choice for investors given its strong market position and low valuation.
- AbbVie as a Defensive Investment: AbbVie has risen 24% during the 2022 bear market since its spin-off from Abbott in 2013, showcasing its resilience as a defensive stock, while its dividend has increased for 13 consecutive years, currently yielding 3.1%.
- Future Growth Potential: AbbVie's drugs Skyrizi and Rinvoq achieved net revenue growth of 33% and 30% in 2025, respectively, with analysts forecasting an 11% stock price increase over the next 12 months to $250 per share, highlighting its strong performance amid drug transitions.
See More
Investment Outlook for Pharmaceutical Sector
- Novo Nordisk Growth Potential: As a global leader in GLP-1 drug manufacturing, Novo Nordisk's diabetes and obesity care drugs saw a 7% sales increase in fiscal 2025, with obesity drugs rising 26%, indicating strong market demand and future growth potential.
- Optimistic Market Outlook: Experts predict that the GLP-1 market will grow to $254 billion by 2034, with a compound annual growth rate of 17%, positioning Novo Nordisk to benefit significantly from this rapidly expanding market and further solidify its leadership.
- AbbVie Defensive Investment: Since its spin-off from Abbott Labs in 2013, AbbVie has shown impressive resilience, rising 24% during the 2022 bear market, demonstrating its strength as a defensive stock, while its 3.1% high dividend yield attracts long-term investors.
- Future Growth Potential: AbbVie's drugs Skyrizi and Rinvoq achieved net revenue gains of 33% and 30% in 2025, respectively, with analysts forecasting an 11% stock price increase over the next 12 months to $250 per share, enhancing its investment appeal.
See More
European Commission Approves Novo Nordisk's New Wegovy Dosage
- New Dosage Approval: Novo Nordisk announced that its 7.2 mg weight-loss drug Wegovy has been approved by the European Commission, allowing sales across 27 EU countries as a once-weekly maintenance dose for adults needing additional weight loss, which is expected to significantly enhance market share.
- Market Expansion: The approval follows a positive opinion from the European Medicines Agency's expert panel in December, indicating strengthened competitiveness in the weight-loss drug market and laying the groundwork for future promotions in other regions.
- U.S. Approval Process: Wegovy 7.2 mg is already approved in the U.K., and Novo Nordisk is currently submitting a supplemental New Drug Application to the FDA, which, if approved, will further expand its influence in the U.S. market and is expected to drive overall company performance growth.
- Shareholder Return Plan: The Novo Nordisk board proposed a final dividend of DKK 7.95 for 2025 and initiated a DKK 15 billion stock buyback plan, demonstrating the company's confidence in future growth and commitment to shareholders.
See More
Novo Nordisk's 7.2 mg Weight Loss Drug Approved
- Clinical Trial Results: In the STEP UP study, adults on the 7.2 mg dose lost about 21% of their body weight over 18 months, compared to roughly 2% for the placebo group, demonstrating significant weight loss efficacy and enhancing the drug's market potential.
- Increased Dosage Flexibility: The newly approved 7.2 mg dose allows doctors to prescribe it as three 2.4 mg injections taken together once a week, providing healthcare professionals with greater flexibility to help obesity patients achieve their weight loss and health goals.
- Market Supply Strategy: Novo Nordisk plans to gradually roll out Wegovy pills to prevent shortages and avoid a repeat of the compounding market that emerged during the injectable semaglutide shortage, ensuring full supply in the U.S. before expanding to other regions.
- Legal Action Update: The company recently sued Hims & Hers Health for selling compounded versions of semaglutide, seeking a permanent ban, reflecting Novo Nordisk's proactive stance in protecting its intellectual property.
See More
Viking Therapeutics Targets Weight Loss Drug Market Growth
- Clinical Trial Progress: Viking Therapeutics is advancing its VK2735 candidate in a phase 3 trial for the injectable format while planning to initiate a phase 3 trial for the oral format in Q3 this year, marking a proactive approach in the weight loss drug market that could establish a competitive foundation for future growth.
- Significant Market Potential: Analysts project that the obesity drug market could reach nearly $100 billion by 2030, providing ample growth opportunities for newcomers like Viking, especially as demand for GLP-1 drugs continues to rise.
- Diversified Product Pipeline: Viking plans to file a request to initiate clinical trials for another dual amylin and calcitonin receptor agonist in Q1, demonstrating the company's strategy to diversify its weight loss drug development to cater to various patient needs.
- Investment Risk Consideration: While Viking's candidate shows promising data, investors should cautiously assess risks since the company has no products on the market yet, and uncertainty may persist until clinical trial outcomes are confirmed.
See More
Novo Nordisk's CagriSema Shows Promising Potential
- Intensifying Market Competition: Novo Nordisk faces fierce competition in the GLP-1 market from Eli Lilly, as Ozempic has been a key growth driver, but the company anticipates declining sales this year, highlighting the urgent need for next-generation therapies to regain market share.
- CagriSema Clinical Trial Success: CagriSema outperformed Wegovy in a phase 3 clinical trial for overweight or obese patients, achieving an average weight reduction of 22.7% after 68 weeks, indicating its potential in weight loss treatment and possibly providing a new growth avenue for Novo Nordisk.
- Regulatory Application Progress: Novo Nordisk has submitted regulatory applications for CagriSema as a weight loss treatment and plans to seek approval for the diabetes indication after completing two additional phase 3 studies, paving the way for future revenue growth.
- Manufacturing Complexity Challenges: Despite CagriSema's efficacy over Ozempic, its higher production costs and complexity compared to semaglutide, along with competition from Eli Lilly's retatrutide, may impact its market performance and overall business outlook.
See More
Investment Potential of Novo Nordisk and AbbVie
- Novo Nordisk Growth Potential: Novo Nordisk's diabetes and obesity care drugs saw a 7% sales increase in fiscal 2025, with obesity care drugs surging by 26%, and experts predict the GLP-1 market will reach $254 billion by 2034, reflecting a robust long-term growth outlook.
- Attractive Valuation: Currently trading at a price-to-earnings ratio of 13, Novo Nordisk's stock price is $49.55, allowing a $500 investment to purchase 10 shares, making it an ideal choice for investors given its strong market position and low valuation.
- AbbVie as a Defensive Investment: AbbVie has risen 24% during the 2022 bear market since its spin-off from Abbott in 2013, showcasing its resilience as a defensive stock, while its dividend has increased for 13 consecutive years, currently yielding 3.1%.
- Future Growth Potential: AbbVie's drugs Skyrizi and Rinvoq achieved net revenue growth of 33% and 30% in 2025, respectively, with analysts forecasting an 11% stock price increase over the next 12 months to $250 per share, highlighting its strong performance amid drug transitions.
See More
Investment Outlook for Pharmaceutical Sector
- Novo Nordisk Growth Potential: As a global leader in GLP-1 drug manufacturing, Novo Nordisk's diabetes and obesity care drugs saw a 7% sales increase in fiscal 2025, with obesity drugs rising 26%, indicating strong market demand and future growth potential.
- Optimistic Market Outlook: Experts predict that the GLP-1 market will grow to $254 billion by 2034, with a compound annual growth rate of 17%, positioning Novo Nordisk to benefit significantly from this rapidly expanding market and further solidify its leadership.
- AbbVie Defensive Investment: Since its spin-off from Abbott Labs in 2013, AbbVie has shown impressive resilience, rising 24% during the 2022 bear market, demonstrating its strength as a defensive stock, while its 3.1% high dividend yield attracts long-term investors.
- Future Growth Potential: AbbVie's drugs Skyrizi and Rinvoq achieved net revenue gains of 33% and 30% in 2025, respectively, with analysts forecasting an 11% stock price increase over the next 12 months to $250 per share, enhancing its investment appeal.
See More
