Danish pharmaceutical company Novo Nordisk (NVO), a significant rival to American giant Eli Lilly (LLY), is generating excitement among European investors. The company’s stock increased by approximately 2% to $57.7 (DKK 365.35) around 10:33 a.m. EDT on the Nasdaq Copenhagen Stock Exchange. In Germany’s Xetra market, shares also saw a rise of 2.36%, reaching $57 (EUR 48.94) as of 10:30 a.m. EDT.
Insight into Wegovy’s Performance
This uptick comes on the heels of reports highlighting the advantages of Novo Nordisk’s Wegovy weight-loss drug, particularly its heart protection benefits, which are suggested to be superior to those of Eli Lilly’s equivalent, as noted by Reuters.
The Competitive Landscape for Weight Loss Pharmaceuticals
Eli Lilly and Novo Nordisk are at the forefront of the competitive race to secure a share of the burgeoning global weight loss market, projected to reach approximately $95 billion by 2030, according to Goldman Sachs Research (GS).
Eli Lilly’s Future in Weight Loss
This development comes shortly after Eli Lilly announced its plans to seek regulatory approval and launch a new weight loss pill, aimed for a global release in the summer of 2026. This upcoming product is anticipated to attract substantial consumer interest.
Eli Lilly expects to receive regulatory approval soon following encouraging results from a late-stage clinical trial that demonstrated its new pill’s efficacy in aiding weight loss and managing Type 2 diabetes. Consequently, HSBC (HSBC), which previously held a bearish outlook on Eli Lilly, has adjusted its rating for LLY stock to a more favorable stance.
The announcement invigorated Eli Lilly’s shares as well; however, the company faces operational challenges including a temporary halt in shipments to the U.K. in preparation for an imminent price increase of its Zepbound weight-loss drug. This price adjustment is in part due to pressure from the White House on American drug manufacturers to reduce domestic drug prices.
Challenges for Novo Nordisk
In contrast, Novo Nordisk’s stock has declined by over 33% since the start of the year, largely resulting from U.S. tariffs imposed on European pharmaceutical imports. In response to this financial strain, the Danish company is increasing its domestic production capacity for treatment products.
Investment Insights on Novo Nordisk
As of the end of regular trading on Friday in the U.S., Novo Nordisk’s stock showed a modest increase of less than 1%, closing at $56.46, although it slipped slightly to $56.45 in after-hours trading.
Currently, Novo Nordisk holds a Moderate Buy consensus rating on TipRanks, derived from two Buy recommendations and five Holds from Wall Street analysts. The average target price for NVO stands at $67.57, indicating a potential upswing of 19.68% from its last closing price.
