Novo Nordisk shares obtained a much-needed finish of the yr increase because the Wegovy maker turned the primary drugmaker to safe approval of a GLP-1 capsule for weight reduction, in what one analyst referred to as a “redemption for the traders” after the inventory’s worst yr ever.
The U.S. Meals and Drug Administration’s approval of Novo Nordisk’s GLP-1 capsule provides the Danish pharmaceutical big a head begin over U.S. rival Eli Lilly, which has additionally filed for FDA approval for its oral weight reduction drug orforglipron.
“As the primary oral GLP-1 remedy for folks dwelling with chubby or weight problems, the Wegovy capsule supplies sufferers with a brand new, handy remedy possibility that may assist sufferers begin or proceed their weight reduction journey,” stated Novo CEO Mike Doustdar in an announcement late Monday.
Shares closed 9.2% increased Tuesday.
Eli Lilly shares have outperformed Novo Nordisk in 2025.
Novo plans to launch oral Wegovy, or “Wegovy-in-a-pill,” within the U.S. – by far its largest market– in early January 2026. The corporate has additionally submitted the capsule for approval to the European Medicines Company (EMA) and different regulatory authorities.
Wegovy’s beginning dose of 1.5 milligrams will likely be out there in pharmacies and by way of choose telehealth suppliers with financial savings provides for $149 per 30 days, Novo stated.
Money-paying sufferers can entry it for a similar worth by way of President Donald Trump’s direct-to-consumer web site, TrumpRx, in line with the deal Novo Nordisk struck together with his administration final month. Drug pricing has been prime of thoughts this yr because the U.S. appears to be like to scale back the prices paid by customers.
Redemption for traders?
The approval caps a turbulent yr for Novo, which has been marked by a number of steerage cuts, mass layoffs, dramatic management shakeups, and a high-profile public bidding battle in opposition to U.S. rival Pfizer.
Novo’s newest information “is a redemption for the traders,” Danish Jyske Financial institution analyst Henrik Hallengreen Laustsen advised CNBC, particularly after a yr wherein shares halved in worth as confidence faltered in Novo’s capacity to compete with Eli Lilly and others.
“A welcome ‘Christmas present’ for Novo traders — and for sufferers as New 12 months weight-loss resolutions sometimes kick in — on condition that Novo expects to launch the product in early January 2026,” Hallengreen Laustsen stated.
“The Wegovy capsule represents a key development driver over the approaching years and a important aggressive instrument versus Eli Lilly, which is predicted to obtain approval for its oral weight problems drug in March–April 2026,” he stated, including that the Wegovy capsule’s approval covers each weight administration and lowering the danger of antagonistic cardiovascular occasions corresponding to strokes and coronary heart assaults.
Novo’s medical information appears to be like “improbable,” Rajesh Kumar, who heads up European life Sciences and healthcare fairness analysis at HSBC, advised CNBC’s “Squawk Field Europe” on Tuesday.
“Efficacy-wise, Novo’s product, on the medical trials not less than, appears to be like higher,” Kumar stated. “Tolerability appears to be like fairly engaging in comparison with [Lilly’s orforglipron].
The Wegovy capsule has thus far proven that it will possibly assist sufferers lose on common 16.6% of their physique weight over a couple of yr. In the meantime, Lilly’s capsule resulted in 12.4% weight reduction in a late-stage medical trial.
“Novo really might need an edge, and it’ll solely depend upon how they execute,” he added. Even so, oral Wegovy should be taken on an empty abdomen, and which may make it simpler for docs to prescribe orforglipron — which does not have the identical restrictions — to sufferers due to compliance, Kumar famous.
Novo has stated it does not see oral Wegovy’s meals restriction as a big barrier, as it may be taken within the morning on an empty abdomen after which solely requires sufferers to attend about half-hour earlier than consuming.
Lilly reported constructive findings from a upkeep trial the place sufferers switched straight from taking the corporate’s injection Zepbound and Novo Nordisk‘s rival shot Wegovy. This will assist Lilly “preserve a little bit of market share,” Kumar stated. “That is the factor we have now to observe,” he added.
Worst yr ever
At the same time as analysts and traders alike are largely optimistic concerning the Wegovy capsule U.S. launch, traders will likely be watching how Novo and its new capsule will fare in relation to Lilly’s oral model. A primary-mover benefit isn’t any assure for future sector dominance and success.
Ozempic, which accommodates the identical lively ingredient semaglutide as Wegovy however is permitted for treating sort 2 diabetes, had a four-year head begin on Lilly rival Mounjaro. Nonetheless, Lilly has now overtaken Novo by way of U.S. prescriptions as Novo has struggled to fulfill demand, permitting a marketplace for compounding pharmacies to flourish. Lilly’s jabs have additionally been proven to result in higher weight reduction.
It has led Novo shares to plummet about 50% in 2025, within the inventory’s worst yr on file.
Buyers have additionally voiced issues about Novo’s pipeline and the way it won’t stack as much as Lilly’s and different hopeful market entrants corresponding to heavyweights Pfizer, AstraZeneca, and Roche.
— CNBC’s Annika Kim Constantino additionally contributed to this report.
