Key Takeaways
- Shares of obesity drug giant Novo Nordisk are down 70% from their 2024 peak
- Second quarter 2026 sales of its recently-launched Wegovy pill failed to match high expectations
- Morningstar director Karen Andersen flags 2026 as a “trough” year for the firm, but says lower prices and pipeline drugs could provide a boost over time.
Surging global appetite for weight-loss drugs has done little to stem share price declines at Danish pharmaceutical giant, Novo Nordisk NOVO B.
Once Europe’s most valuable company, Novo’s share price has been declining for more than two years straight. The stock is now down 70% from its June 2024 peak, having wiped out all gains since its resurgence as an obesity drug darling some five years ago.
In 2026 alone, Novo shares have lost 6% in what Morningstar director Karen Andersen describes as a “trough year”, where expectations are “appropriately low”.
But can the stock reverse these falls?
Why Do Novo Shares Keep Falling?
Novo’s second quarter results provided little bounce. Adjusted operating profit beat analyst expectations, rising 11% annually on a constant currency basis. And the company announced a modest uptick in its 2026 guidance.
Yet sales of its recently launched Wegovy pill—a perceived “bright spot” for the firm—failed to impress. Bumper demand was offset by lower prices, the firm said, bringing sales in just shy of analyst expectations. Meanwhile, trial results for Novo’s next-generation Cagrisema rival Eli Lilly’s LLY Zepbound.
Morningstar’s Andersen says the firm is now entering a more difficult second half, with generic releases of its key Semaglutide GLP-1 in Canada and Brazil, and lower-priced cash pay products, likely to weigh on sales.
So, is Novo’s stock a buy in 2026?
Are Novo Shares a Buy in 2026?
With a market cap of 1.3 trillion Danish kroner, Novo shares are currently trading around 308 kroner a share.
Morningstar in August lowered its fair value estimate for Novo to 285 Danish kroner from 311 Danish kroner, citing a reduction in its long-term gross margin forecast and Cagrisema sales expectations.
Andersen notes that Novo could benefit from future growth as lower prices unlock new demand, and as the firm continues to develop its drug pipeline. However, for now, shares of the obesity drug giant appear slightly overvalued.
