Novo Nordisk lagged behind its archive Eli Lilly, an obesity in the drug market.
Composite GLP-1 drugs have become such a problem that Novo Nordisk has changed its CEO.
Expectations are so low that the upcoming Wegovy tablet can send Novo Nordisk next year.
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Denmark’s pharmaceutical giant Novo Nordisk(NYSE: NGO) Has survived a significant decline in stock price and has fallen by more than 50%over the past year. The miserable results of the shares are particularly gloomy, given that the pharmaceutical company is one of the leading rapidly growing obesity drug participants, which industry experts expect by 2035. Industrial experts will explode up to $ 150 billion compared to just $ 15 billion last year.
Novo Nordisk has developed Semaglutide, a major active ingredient in popular branded GLP-1 agonists such as Ozempic and Wegovy. However, competition has intensified and the market is skeptical about the prospects of the company’s growth.
That is why the Novo Nordisk dividends are safe and why these dividend stocks could rise in 2026.
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Novo Nordisk’s main specialty is diabetes, which was a gateway to the wider obesity market. GLP-1 agonists, which help to lose weight by inhibiting appetite, expanded from initially diabetes to chronic weight management.
After reading some news headlines about obesity drugs, you can guess that Novo Nordisk’s depressed stock price indicates that business is not lucky, but that is simply not true. As you can see from the chart below, Novo Nordisk’s revenue and profit increased from 2023, when obesity drugs began to popularize.
Those who care about the Novo Nordisk dividend may probably relax. The company’s dividends are less than a quarter of its expected 2025. Income.
Ycharts data.
Still, what weighed the stock price is that its archive, Eli LillyThe US Obesity Market has surpassed Novo Nordisk.
The Novo Nordisk leadership team estimated that his obesity medicine Wegovy has approximately 282,000 prescriptions in the US, accounting for approximately 40% of the entire branded drug market. Eli Lilly Zepbound (Tirzepatide) has surpassed him in recent years with approximately 419,000 recipes.
In addition, competition came from Telehealth companies selling composite versions of Semaglutide. Novo Nordisk and Eli Lilly tried to satisfy the initial demand for their weight loss drugs, allowing other companies to sell complex versions of the FDA gap.
At the end of the deficiency, some remote health companies continued to sell these compound drugs, claiming that it was medically needed because of their ability to adapt the dose for patients. Composite GLP-1 products have become disputes, but regulatory authorities have not yet taken sufficient measures from the market to remove compound GLP-1 medicines.
Novo Nordisk acknowledges that the composition costs an IT business, and the company has even pushed its CEO this year. While Novo Nordisk can eventually win this fight in court, a faster decision may be an superior product.
Currently, all popular weight loss drugs and their composite versions require injections. Novo Nordisk is racing to release Wegovy Pill, its successful main active ingredient, semaglutid, in tablets. The tablet is likely to appeal to patients more than a needle, and is usually easier and cheaper to produce and store.
Theoretically, this could force patients to move from complex treatment to Wegovy pill. Novo Nordisk recently announced that patients decreased on average 16.6% after 64 weeks in phase 3 and expects FDA approval to sell Wegovy pill by the end of this year.
When Novo Nordisk’s market share has decreased over the year in obesity drugs, analysts have significantly reduced their long -term growth ratings. Such a sudden decrease in expectations has reduced the share price of the company:
Ycharts data.
But the funny matter of expectations is that they can change instantly.
Novo Nordisk is not without risk. The company with its new CEO must stop the market share of obesity in the drug market. Eli Lilly also creates a mouth weight loss tablet that is likely to mean constant competition.
Nevertheless, the growth of medium -digit earnings seems terrible pessimistic, given that the obesity drug market may grow ten times over the next decade. It is hard to imagine how Novo Nordisk does not grow faster unless the company is completely out of the market.
Even if the Novo Nordisk and Eli Lilly both win regulatory approval for their obesity drug tablets, they can still be the only two companies with oral obesity drugs in the market. These drugs were previously missing, making the cake look big enough to feed two mouths.
More importantly, the mouth tablet would be a huge Novo Nordisk effort to fight remote health companies selling composite injections.
Just seemed to have become too pessimistic to Wall Street. Eventually, time will tell if it’s true or not. Still, don’t hurry to write off Novo Nordisk. The campaigns could increase from low expectations next year if Wegovy Pill causes self -confidence.
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Justin Pope has no position in any of the above shares. The Motley fool recommends Novo Nordisk. The Motley fool has a disclosure policy.
