Is Novo Nordisk's Wegovy-Fueled Rebound Evaporating?

Is Novo Nordisk's Wegovy-Fueled Rebound Evaporating?

Prosper Junior Bakiny, The Motley Fool

Thu, August 13, 2026 at 8:20 PM GMT+3 4 min read

• NVO -1.06%
• NVDA +0.59%

Novo Nordisk (NYSE: NVO) posted strong first-quarter results and performed fairly well in the month that followed its first-quarter update. However, the company's most recent financial update, for the second quarter, erased much of those gains. In both cases, the market's reaction was largely driven by the performance of the Wegovy pill, the first oral GLP-1 approved for weight loss, which Novo Nordisk launched in the U.S. in January. The Wegovy pill beat expectations in the first quarter but came up short in the second. What does this mean for the company's prospects?

Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »

The importance of the Wegovy pill

Over the past few years, Novo Nordisk has lost significant market share to its biggest rival, Eli Lilly (NYSE: LLY). However, the Denmark-based pharmaceutical leader has dominated its main competitor in the oral weight-loss market, thanks to the Wegovy pill. And that's even though Eli Lilly's Foundayo has no food or water restrictions and can be taken at any time of the day -- whereas the Wegovy pill must be taken first thing in the morning on an empty stomach.

Wegovy's stronger brand name and physicians' greater familiarity with the compound semaglutide are likely playing a key role in helping Novo Nordisk maintain its lead in this niche. Further, the Wegovy pill is helping Novo Nordisk expand the market. The company noted that more than 80% of patients on the pill had never taken GLP-1s before, perhaps because they dislike needles. That's why the Wegovy pill has been an incredibly important product for Novo Nordisk this year.

The sky is not falling

In Novo Nordisk's second quarter, Wegovy pill sales came in at 3.22 billion Danish kroner ($500 million), short of analyst projections of $3.3 billion ($510 million). Given everything Novo Nordisk has endured these past couple of years, and the fact that oral Wegovy has been its saving grace lately, it's not surprising that even a slight miss in sales for this product led to a post-earnings sell-off.

But for investors focused on the long game, it's important not to be distracted by short-term market swings. The more important question is whether this changes Novo Nordisk's investment thesis. My view is that it doesn't. To be clear, the company is still facing headwinds. Sales and earnings growth haven't been strong for the drugmaker -- whereas Eli Lilly's GLP-1 portfolio is flying -- and Novo Nordisk may face even more competition moving forward.

However, the healthcare giant remains the leader in the oral weight-loss market and boasts several mid- or late-stage candidates that could enable it to better compete with Eli Lilly. Novo Nordisk could experience meaningful clinical wins over the next couple of years, thereby improving its approved portfolio and putting it in a strong position to capitalize on the fast-growing GLP-1 market. So, for investors willing to be patient, Novo Nordisk is still a buy.

Should you buy stock in Novo Nordisk right now?

Before you buy stock in Novo Nordisk, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Novo Nordisk wasn't one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $400,209!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,375,393!*

That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul.

See the 10 stocks »

*Stock Advisor returns as of August 13, 2026.

Prosper Junior Bakiny has positions in Eli Lilly and Novo Nordisk. The Motley Fool has positions in and recommends Eli Lilly and Novo Nordisk. The Motley Fool has a disclosure policy.

Is Novo Nordisk's Wegovy-Fueled Rebound Evaporating? was originally published by The Motley Fool