Key Points

Novo Nordisk has reported strong initial sales for the pill-based version of its GLP-1 weight loss drug, Wegovy.
Sales do not appear to be coming at the expense of Novo's previously released injectable Wegovy products.
This could lead to better-than-expected results in the coming quarters even as competition heats up.

Novo Nordisk (NYSE: NVO), once the leader in the GLP-1 weight loss drug category, has faced increased pressure as rival Eli Lilly gained ground. Yet the recent launch of an oral version of Wegovy may provide fresh momentum.

CEO Mike Doustdar highlighted in a recent discussion that 80 percent of patients using the Wegovy pill had not previously tried weight loss medications. This indicates the company is reaching individuals who avoided injectable options but remain interested in treatment.

Does this development alter the narrative for the GLP-1 stock that has fallen out of favor? The following analysis explores that question.

Wegovy pill: expanding the market for Novo Nordisk?

Introduced in January, the Wegovy pill achieved 355 million dollars in sales during the first quarter. Rather than taking share from existing injectable Wegovy offerings, Novo appears to be broadening the total addressable market through this new format.

Executive vice president Jamey Millar of Novo Nordisk U.S. operations added during the Q1 earnings call that the pill is also attracting patients switching from rival treatments.

What this means for the bear case

Some observers may expect this advantage to fade quickly. Eli Lilly introduced its own oral GLP-1 candidate, orforglipron, in April. However, that product has seen limited uptake so far. Consequently, Novo Nordisk raised its 2026 guidance, citing expectations that the competitor launch will not hinder further growth of the Wegovy pill.

Even modest outperformance driven by the pill could meaningfully affect future share price. Shares currently trade below 13 times forward earnings, reflecting assumptions of ongoing earnings contraction. Should declines ease or overall growth resume, the stock, which has dropped more than 40 percent over the past year, could see renewed interest.

Should you buy stock in Novo Nordisk right now?

Before purchasing shares, investors should weigh several factors. Independent research continues to highlight other opportunities in the sector that may offer stronger near-term prospects than Novo Nordisk.