Danish pharmaceutical giant Novo Nordisk (NVO) has seen a strong rebound at the start of 2026, following two consecutive years of declining stock prices. This shift is closely linked to the launch and impressive performance of its oral weight-loss drug, Wegovy tablets. Since the beginning of the year, the company’s stock has risen by approximately 26%, significantly outperforming the S&P 500, which has only increased by about 1.5%, and reversing its earlier weakness compared to its main competitor, Eli Lilly (LLY).
Market demand for Novo Nordisk’s weight-loss drugs has been exceptionally robust. As the first approved oral GLP-1 obesity drug on the market, Wegovy tablets officially launched in the United States earlier this month, with prescriptions reaching 18,410 in the first week. Sales momentum has accelerated rapidly, with weekly prescriptions climbing to 26,109 as of the week ending January 23. Analysts believe this strong start has provided the company with much-needed growth momentum.
The oral version is easier to mass-produce compared to injectables and is more convenient for patients who are reluctant to use needles, laying the foundation for its market expansion. Previously, Novo Nordisk had lowered its full-year performance expectations due to intensifying competition and issues like counterfeit versions of popular drugs. However, the success of this new drug is expected to significantly boost its growth figures for 2026.
Despite its strong start to the new year, Novo Nordisk’s stock still appears relatively inexpensive, with a price-to-earnings ratio of around 17. In comparison, its competitor Eli Lilly trades at a P/E ratio exceeding 50. Looking back at 2025, Novo Nordisk’s stock had declined by 41%, with investors turning pessimistic due to factors such as lowered performance expectations and a change in CEO. However, the market’s pessimism toward this stock may have been excessive.
With the rapid adoption of oral Wegovy, Novo Nordisk is regaining investor confidence. Over the past two years, Eli Lilly had seen strong stock performance by capturing a significant market share, but Novo Nordisk is now leveraging its first-mover advantage in oral medications to turn the tide. Currently, Eli Lilly is still awaiting approval for its oral weight-loss drug, and the competitive landscape is likely to continue evolving.
Overall, Novo Nordisk’s stock still has significant room for growth this year. Despite the initial surge, it may not be too late to invest in this healthcare stock, as the current rebound could mark just the beginning of a larger upward trend.
