Novo Nordisk

NVO

Market cap $219B

Novo Nordisk's trial to treat Alzheimer's with its GLP-1 drug failed. The company has been losing market share to Eli Lilly.

Novo Nordisk remains a Strong Buy despite recent earnings misses, trial setbacks, and competitive pressures in the weight loss/diabetes market. NVO's valuation is compelling, trading at a low P/E of 12.66 with robust margins and industry-leading growth, even amid restructuring costs. Recent U.S. drug pricing agreements and Medicare inclusion may pressure short-term sales but are likely to expand long-term market access for NVO's GLP-1 drugs.

Novo Nordisk A/S (NVO), though cheap at 13x forward earnings, is in my view a value trap, as growth is slowing and GLP-1 pricing pressures are capping revenue and profitability. The TrumpRx platform will offer GLP-1 prices of roughly $245/month by 2027, while cheaper future oral pills ($150/month) further pressure Novo's key obesity franchise in the US. Street's forecasts show revenue slowing to low single-digit growth in 2026, with forward EPS estimates trending down, while Eli Lilly's stronger growth justifies its premium multiple.

The company revealed critical information that investors will not want to miss.

PFE's oncology gains and obesity re-entry contrast with NVO's GLP-1 pressures in this in-depth comparison of two healthcare giants.

NVO seeks an expedited FDA review for a higher 7.2 mg dose of Wegovy after strong weight-loss results in its STEP UP study.

Medicare has negotiated steep new prices for 15 high-cost drugs, including Novo Nordisk's blockbuster semaglutide (Wegovy and Ozempic), with negotiated prices set to take effect in 2027. The move cuts projected Medicare spending by an estimated $8.

Novo Nordisk is seeking FDA approval for a 7.2 mg dose of Wegovy, nearly three times the current maximum dose. The application is under expedited FDA review, with a decision expected within one to two months.

On Wednesday, Novo Nordisk A/S (NYSE: NVO) submitted its supplemental marketing application to the U.S. Food and Drug Administration (FDA) for a higher dose of semaglutide injection 7.2 mg for chronic weight management.

The IRA from 2022 allows the CMS to negotiate prices for a number of drugs each year for patients in Medicare. Late Tuesday, the agency announced newly negotiated prices for 15 blockbuster drugs from 2027, including Novo Nordisk's mega bestseller Ozempic which will see a 71% discount to its list price.