Novo Nordisk Stock Down 66% but Still Attractive for Dividend Investors
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
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Source: Fool
- Poor Market Performance: Novo Nordisk's stock has plummeted 66% from its 2024 highs and has taken a significant hit due to weak guidance for 2026, indicating a lack of competitiveness in the GLP-1 market.
- Increased Competitive Pressure: Although Novo Nordisk was the first to launch a GLP-1 weight loss injection, its inability to meet demand has allowed competitors like Eli Lilly's Mounjaro and Zepbound to erode its market share, challenging its position.
- New Drug Form Advantage: Novo Nordisk successfully launched an oral version of its GLP-1 drug, which is expected to attract more consumers, particularly those who prefer pills over injections, potentially allowing the company to regain market share before Eli Lilly's oral version is released.
- Valuation Appeal: With a price-to-earnings ratio of 13.5 compared to Eli Lilly's 45 and an attractive 3.7% dividend yield, Novo Nordisk presents a compelling opportunity for value investors, even as 2026 may serve as a pivotal year.
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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: 49.230
Low
42.00
Averages
54.67
High
70.00
Current: 49.230
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
Eli Lilly Leads in GLP-1 Weight Loss Drug Market
- Market Leadership: Eli Lilly's Mounjaro and Zepbound outperform Novo Nordisk's Ozempic/Wegovy in the GLP-1 weight loss drug market, demonstrating the company's competitive edge despite being a second mover in a rapidly growing sector.
- Revenue Dependency Risk: By the end of 2025, Mounjaro and Zepbound will account for 56% of Eli Lilly's total revenue, indicating a significant reliance on these two drugs that could pose substantial risks, especially as market competition intensifies.
- Significant Sales Growth: Mounjaro's sales surged by 99% year-over-year, while Zepbound's sales skyrocketed by 175%, with nearly all of the 45% revenue increase attributed to these two GLP-1 drugs, highlighting their critical impact on the company's performance.
- Intensifying Competition: Novo Nordisk has launched an oral version of its GLP-1 drug, potentially reclaiming market share, while Pfizer is also aggressively entering the GLP-1 space, indicating that Eli Lilly may face fierce competition that could affect its market leadership in the future.
See More
Eli Lilly Faces Intense Competition in GLP-1 Drug Market
- Strong Market Performance: Eli Lilly's Mounjaro and Zepbound drugs accounted for 56% of the company's revenue in 2025, with Mounjaro sales rising 99% year-over-year and Zepbound increasing by 175%, showcasing robust performance in the GLP-1 weight-loss drug market.
- Intensifying Competition: Despite Eli Lilly's leading position in the GLP-1 market, Novo Nordisk has launched a competing GLP-1 pill, potentially regaining market share, while Pfizer is also aggressively entering this space, heightening competitive pressures.
- Valuation Pressures: With a price-to-earnings ratio of 45x, the market has high expectations for Eli Lilly's future performance, and any shortfall in 2026 earnings could lead to a significant stock price pullback, necessitating careful investor evaluation.
- Limited Patent Protection: The market exclusivity for new drugs is finite, and once patents expire, generic competition typically leads to substantial revenue declines for branded drugs, indicating that Eli Lilly's GLP-1 success may not be sustainable, highlighting potential long-term risks for investors.
See More
Novo Nordisk Stock Down 66% but Still Attractive for Dividend Investors
- Poor Market Performance: Novo Nordisk's stock has plummeted 66% from its 2024 highs and has taken a significant hit due to weak guidance for 2026, indicating a lack of competitiveness in the GLP-1 market.
- Increased Competitive Pressure: Although Novo Nordisk was the first to launch a GLP-1 weight loss injection, its inability to meet demand has allowed competitors like Eli Lilly's Mounjaro and Zepbound to erode its market share, challenging its position.
- New Drug Form Advantage: Novo Nordisk successfully launched an oral version of its GLP-1 drug, which is expected to attract more consumers, particularly those who prefer pills over injections, potentially allowing the company to regain market share before Eli Lilly's oral version is released.
- Valuation Appeal: With a price-to-earnings ratio of 13.5 compared to Eli Lilly's 45 and an attractive 3.7% dividend yield, Novo Nordisk presents a compelling opportunity for value investors, even as 2026 may serve as a pivotal year.
See More
Hims & Hers Acquires Eucalyptus for $1.15 Billion
- Acquisition Scale: Hims & Hers announced the $1.15 billion acquisition of Australian telehealth company Eucalyptus, which is expected to add $450 million in annualized revenue, significantly enhancing its market share and revenue base.
- International Expansion: This acquisition marks Hims & Hers' rapid expansion into global markets, as the company chooses to accelerate its internationalization despite facing recent legal actions, demonstrating confidence in future growth.
- Cash Flow Impact: While this transaction will boost revenue, Hims & Hers will utilize most of its cash for the acquisition, potentially weakening its financial flexibility, prompting investors to monitor its subsequent cash flow management strategies.
- Investor Confidence: Although using a significant portion of cash may raise concerns among investors, the potential benefits of the acquisition and market expansion opportunities could enhance investor confidence in the company over the long term.
See More
Bridgewater Associates Acquires Dell and UnitedHealth, Divests AT&T Shares
- Portfolio Changes: Bridgewater Associates made significant adjustments to its investment portfolio in the fourth quarter.
- Exiting Investments: The hedge fund exited its position in a major wireless carrier as part of its strategy.
- Healthcare Holdings: Bridgewater also readjusted its investments in the healthcare sector.
- Market Position: As the largest hedge fund globally by assets under management, these changes reflect its ongoing strategy to optimize performance.
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
Eli Lilly Leads in GLP-1 Weight Loss Drug Market
- Market Leadership: Eli Lilly's Mounjaro and Zepbound outperform Novo Nordisk's Ozempic/Wegovy in the GLP-1 weight loss drug market, demonstrating the company's competitive edge despite being a second mover in a rapidly growing sector.
- Revenue Dependency Risk: By the end of 2025, Mounjaro and Zepbound will account for 56% of Eli Lilly's total revenue, indicating a significant reliance on these two drugs that could pose substantial risks, especially as market competition intensifies.
- Significant Sales Growth: Mounjaro's sales surged by 99% year-over-year, while Zepbound's sales skyrocketed by 175%, with nearly all of the 45% revenue increase attributed to these two GLP-1 drugs, highlighting their critical impact on the company's performance.
- Intensifying Competition: Novo Nordisk has launched an oral version of its GLP-1 drug, potentially reclaiming market share, while Pfizer is also aggressively entering the GLP-1 space, indicating that Eli Lilly may face fierce competition that could affect its market leadership in the future.
See More
Eli Lilly Faces Intense Competition in GLP-1 Drug Market
- Strong Market Performance: Eli Lilly's Mounjaro and Zepbound drugs accounted for 56% of the company's revenue in 2025, with Mounjaro sales rising 99% year-over-year and Zepbound increasing by 175%, showcasing robust performance in the GLP-1 weight-loss drug market.
- Intensifying Competition: Despite Eli Lilly's leading position in the GLP-1 market, Novo Nordisk has launched a competing GLP-1 pill, potentially regaining market share, while Pfizer is also aggressively entering this space, heightening competitive pressures.
- Valuation Pressures: With a price-to-earnings ratio of 45x, the market has high expectations for Eli Lilly's future performance, and any shortfall in 2026 earnings could lead to a significant stock price pullback, necessitating careful investor evaluation.
- Limited Patent Protection: The market exclusivity for new drugs is finite, and once patents expire, generic competition typically leads to substantial revenue declines for branded drugs, indicating that Eli Lilly's GLP-1 success may not be sustainable, highlighting potential long-term risks for investors.
See More
Novo Nordisk Stock Down 66% but Still Attractive for Dividend Investors
- Poor Market Performance: Novo Nordisk's stock has plummeted 66% from its 2024 highs and has taken a significant hit due to weak guidance for 2026, indicating a lack of competitiveness in the GLP-1 market.
- Increased Competitive Pressure: Although Novo Nordisk was the first to launch a GLP-1 weight loss injection, its inability to meet demand has allowed competitors like Eli Lilly's Mounjaro and Zepbound to erode its market share, challenging its position.
- New Drug Form Advantage: Novo Nordisk successfully launched an oral version of its GLP-1 drug, which is expected to attract more consumers, particularly those who prefer pills over injections, potentially allowing the company to regain market share before Eli Lilly's oral version is released.
- Valuation Appeal: With a price-to-earnings ratio of 13.5 compared to Eli Lilly's 45 and an attractive 3.7% dividend yield, Novo Nordisk presents a compelling opportunity for value investors, even as 2026 may serve as a pivotal year.
See More
Hims & Hers Acquires Eucalyptus for $1.15 Billion
- Acquisition Scale: Hims & Hers announced the $1.15 billion acquisition of Australian telehealth company Eucalyptus, which is expected to add $450 million in annualized revenue, significantly enhancing its market share and revenue base.
- International Expansion: This acquisition marks Hims & Hers' rapid expansion into global markets, as the company chooses to accelerate its internationalization despite facing recent legal actions, demonstrating confidence in future growth.
- Cash Flow Impact: While this transaction will boost revenue, Hims & Hers will utilize most of its cash for the acquisition, potentially weakening its financial flexibility, prompting investors to monitor its subsequent cash flow management strategies.
- Investor Confidence: Although using a significant portion of cash may raise concerns among investors, the potential benefits of the acquisition and market expansion opportunities could enhance investor confidence in the company over the long term.
See More
Bridgewater Associates Acquires Dell and UnitedHealth, Divests AT&T Shares
- Portfolio Changes: Bridgewater Associates made significant adjustments to its investment portfolio in the fourth quarter.
- Exiting Investments: The hedge fund exited its position in a major wireless carrier as part of its strategy.
- Healthcare Holdings: Bridgewater also readjusted its investments in the healthcare sector.
- Market Position: As the largest hedge fund globally by assets under management, these changes reflect its ongoing strategy to optimize performance.
See More
