Novo Nordisk's recovery persists
Novo Nordisk, the Danish pharmaceutical company, has seen a significant recovery in its stock performance following disappointing results from Eli Lilly's weight loss pill Orfoglipron. The news was reported by THE ACTIONER, and although the study on Orfoglipron provided further details, no major surprises were disclosed beyond what had previously been disclosed.
Initially, Novo Nordisk's stock faced pressure due to weaker momentum in its semaglutide-based drugs (Wegovy and Ozempic) and a lowered 2025 outlook, partly because of intense competition from Eli Lilly's strong-selling tirzepatide drugs (Mounjaro and Zepbound) and issues like counterfeit semaglutide sales harming uptake. However, following the disappointing results from Eli Lilly’s oral GLP-1 candidate, Novo Nordisk's stock staged a modest recovery in August 2025, rising about 5.8%.
Recently, the outlook for Novo Nordisk has improved further. The company announced price cuts on Ozempic to counter competition and make treatments more accessible, partnered with GoodRx to offer lower prices on Ozempic and Wegovy, and gained FDA approval to expand Wegovy's use to treat liver disease. These positives, coupled with reported strong sales growth of 18% in H1 2025 driven by its diabetes and obesity segments, have boosted investor confidence, causing the stock to surge over 4% in mid-August 2025.
Elmar Kraus of DZ Bank believes that Novo Nordisk's new CEO, Maziar Mike Doustdar, needs to establish his own identity. Kraus sees no upside potential in Novo Nordisk's stock despite its recently lower valuation, with his currently reduced target price for Novo Nordisk's stock at 333 Danish Kroner (44.61 Euro). However, Kraus has not issued a buy recommendation for Novo Nordisk's stock.
Despite these challenges, Novo Nordisk is currently viewed as well-positioned in the diabetes and obesity market with improving stock performance and favorable growth prospects. The main task for Novo Nordisk and its new CEO is to gradually regain the lost trust of the capital market. Investors should be patient when it comes to Novo Nordisk, as the company takes steps to restore its position in the market.
A detailed assessment of Novo Nordisk can be found in the current AKTIONÄR issue, which can be downloaded here. THE ACTIONER believes the Danes can make a comeback, and the recovery movement in Novo Nordisk's stock is due to bad news from major competitor Eli Lilly.
References: 1. [Source 1] 2. [Source 2] 3. [Source 3] 4. [Source 4] 5. [Source 5]
In light of the recovery in Novo Nordisk's stock performance due to unfavorable results for Eli Lilly's weight loss pill Orfoglipron, individuals interested in personal-finance and business might consider investing in the pharmaceutical company, given its improving outlook and favorable growth prospects in the diabetes and obesity market. However, it's crucial to carefully consider expert opinions, such as that of Elmar Kraus of DZ Bank, who has not issued a buy recommendation for Novo Nordisk's stock and currently holds a reduced target price for the company.
