Novo Nordisk (NYSE: NVO) has struggled over the past year, and the company recently hit another setback when it reported disappointing fourth-quarter results and even worse guidance for fiscal year 2026. The stock price fell by nearly 15% following these developments.
However, there are several things to look forward to for Novo Nordisk. One of them is its recent launch of an oral version of its famous weight loss drug, Wegovy. And regarding this product, Novo Nordisk just got great news from its biggest competitor in the weight loss market: Eli Lilly (NYSE: LLY).
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The leading anti-obesity medicines, Novo Nordisk’s Wegovy and Eli Lilly‘s Zepbound, are administered weekly via subcutaneous injection. These are inconvenient for several reasons. First, many patients don’t like needles. Some have chosen to avoid these therapies as a result. Second, injectable medications come with tighter storage requirements than oral pills. Although they can be kept at room temperature for some time, they must typically be refrigerated, but not frozen.
This is harder to keep up with, especially for patients who travel a lot. That’s why the launch of an oral version of Wegovy was a big deal. And by most accounts, it is, so far, a hit. Oral Wegovy’s prescription volume has been growing rapidly. Here’s the best part: Oral Wegovy isn’t just cannibalizing sales of the original formulation of the medicine. Here’s part of what Eli Lilly’s executive VP, Kenneth Custer, said about Oral Wegovy: “It looks like these are mostly new starts. That means it’s expanding the market.”
Importantly, Custer went on to say that Oral Wegovy’s performance so far is a great sign for Eli Lilly, which is inching closer to launching its own oral GLP-1, orforglipron. But what about Novo Nordisk? Even with this brand-new product, the company expects its sales to decline in 2026 amid competition and government-led drug price negotiations.
Oral Wegovy will help somewhat, but even with its strong performance so far and its ability to expand the weight loss market, it won’t be enough. Can the stock bounce back? If it does, it will likely do so on the back of brand-new medicines. The company is awaiting approval for CagriSema, a next-generation weight loss and diabetes therapy.