Breaking stories and in‑depth analysis: up‑to‑the‑minute global news on politics, business, technology, culture, and more—24/7, all in one place.
Novo Nordisk shares fell sharply on Thursday after the Danish pharmaceutical giant warned of a potential sales decline in 2026, despite the recent successful launch of an oral version of its blockbuster weight-loss drug, Wegovy. The stock closed down nearly 15% following the announcement of fourth-quarter results and the downbeat forecast.
The company’s struggles reach as competition in the rapidly expanding weight-loss market intensifies, particularly from Eli Lilly. Novo Nordisk is also facing headwinds from government-led drug price negotiations, which are expected to impact revenue. The oral formulation of Wegovy, introduced to address patient preferences for non-injectable medications, had initially been seen as a key growth driver.
However, recent data suggests the oral version is attracting new patients rather than simply converting existing Wegovy users. Eli Lilly’s executive vice president, Kenneth Custer, stated that the oral Wegovy uptake “looks like these are mostly new starts. That means it’s expanding the market.” This observation is particularly encouraging for Eli Lilly, as it prepares to launch its own oral GLP-1 medication, orforglipron.
The convenience of an oral medication addresses two key barriers to treatment with injectable GLP-1 receptor agonists like Wegovy and Zepbound: needle aversion and storage requirements. Injectable medications require refrigeration, posing logistical challenges for travelers and those with limited storage capacity.
Despite the positive impact of oral Wegovy on market expansion, Novo Nordisk anticipates a sales decrease in 2026. The company is pinning its hopes on upcoming therapies, including CagriSema, a next-generation treatment for both weight loss and diabetes currently awaiting regulatory approval. Clinical trial results for amycretin, a phase 3 weight loss drug, are also anticipated this year, alongside progress on several other weight loss candidates in phase 2 and phase 3 trials.
Novo Nordisk’s stock recently hit a 52-week low, potentially presenting a buying opportunity for long-term investors, contingent on the success of its pipeline. The company’s gross margin stands at 80.90% with a dividend yield of 3.56% as of today, February 21, 2026.
Novo Nordisk recently announced it will pursue legal action against Hims & Hers Health, Inc. After the telehealth company began offering a compounded version of Wegovy for $49, a significantly lower price than the branded medication. The company views this as a violation of its intellectual property rights.