Can Wegovy Pill's Rapid Uptake Give Novo Nordisk an Edge Over LLY?

Novo Nordisk NVO remains one of the dominant players in the rapidly expanding obesity treatment market. The company markets its blockbuster GLP-1 medicine Wegovy (semaglutide) in both injectable and oral forms. While the injectable version has been a key growth driver for years, NVO broadened its franchise with the approval of the Wegovy pill in late December 2025 and its commercial launch in January 2026. The oral formulation marked a significant milestone for the company by offering patients a needle-free treatment option in a market where demand for convenient obesity therapies continues to rise.Wegovy is approved for chronic weight management in adults with obesity and certain overweight adults with weight-related health conditions when used alongside diet and exercise. It is also approved to reduce the risk of major cardiovascular events, including heart attack, stroke and cardiovascular death, in adults with established heart disease who have obesity or are overweight. These dual benefits have helped differentiate Wegovy from competing therapies.The Wegovy pill launch has been one of the strongest pharmaceutical rollouts in recent U.S. history. Novo Nordisk reported that the oral formulation surpassed three million prescriptions in just over five months after its launch, equivalent to roughly one prescription being filled every five seconds. The drug's momentum also accelerated over time, reaching its first one million prescriptions in about 12 weeks and adding the next two million in only 10 weeks.Importantly, the majority of demand appears to be coming from new patients rather than existing GLP-1 users switching therapies. More than 80% of new Wegovy pill prescriptions were written for people who had not previously used a GLP-1 medicine, suggesting the oral formulation is expanding the obesity treatment market and attracting patients who may have been reluctant to start injectable therapies.The rapid uptake also reflects improved affordability and access. Wegovy is now available through more than 70,000 U.S. pharmacies and multiple distribution channels. Commercially insured patients may obtain the drug for as little as $25 per month through savings programs, while eligible Medicare beneficiaries are expected to gain access through a new program offering a $50 monthly copay beginning in July 2026.Wegovy Pill Momentum Strengthens NVO Against LLY RivalThe latest prescription milestone arrives as competition with Eli Lilly LLY intensifies. Lilly has emerged as Novo Nordisk’s primary challenger in obesity treatment through its injectable GLP-1/GIP therapy Zepbound (tirzepatide) and its recently launched oral obesity pill, Foundayo (orforglipron). Both companies now offer injectable and oral treatment options, setting the stage for a fierce battle for market share.Eli Lilly recently strengthened its position by securing broader coverage from major U.S. pharmacy benefit managers, including CVS Caremark. The expanded reimbursement support improves access to both Zepbound and Foundayo and could help accelerate prescription growth. At the same time, Zepbound continues to benefit from data showing greater weight-loss efficacy than Wegovy in a prior head-to-head study.However, Novo Nordisk's latest prescription figures demonstrate that its first-mover advantage in oral obesity treatment remains meaningful. The fact that the Wegovy pill has already surpassed three million prescriptions and continues to attract large numbers of GLP-1-naive patients suggests that NVO has established substantial early momentum. While Lilly's broader insurance coverage could narrow the gap over time, the rapid uptake of the Wegovy pill provides evidence that Novo Nordisk has successfully expanded patient access, strengthened affordability and built a sizable foothold in the oral obesity market before competition fully intensifies.NVO Faces Rising Threats Beyond Lilly in the Obesity MarketThe obesity space has garnered much of the spotlight over the past year due to the sizeable and still underpenetrated market opportunity. Smaller biotech firms, like Viking Therapeutics VKTX and Structure Therapeutics GPCR, are also advancing GLP-1–based therapies to challenge the incumbents. Viking Therapeutics’ dual GIPR/GLP-1 receptor agonist, VK2735, is being developed both as oral and subcutaneous formulations for the treatment of obesity. Viking Therapeutics plans to advance oral VK2735 into phase III development for obesity in the fourth quarter of 2026.Structure Therapeutics’ phase II ACCESS study on its orally administered GLP-1 RA, aleniglipron, demonstrated significant weight loss across all doses. Structure Therapeutics expects to initiate the late-stage program of aleniglipron in obesity in the second half of 2026.NVO’s Stock Price, Valuation & EstimatesYear to date, Novo Nordisk shares have lost 15.5% against the industry’s 4.5% growth. The company has also underperformed the sector and the S&P 500 during the same time frame, as seen in the chart below.NVO Stock Underperforms the Industry, Sector & the S&P 500Image Source: Zacks Investment ResearchNovo Nordisk is trading at a discount to the industry, as seen in the chart below. Going by the price/earnings ratio, the company’s shares currently trade at 12.44 forward earnings, which is lower than 17.69 for the industry. The stock is trading much below its five-year mean of 29.25.NVO Stock’s ValuationImage Source: Zacks Investment ResearchEarnings estimates for 2026 have improved from $3.45 to $3.46 per share over the past 30 days. During the same time frame, Novo Nordisk’s 2027 earnings estimates have increased from $3.32 to $3.44 per share.NVO’s Estimate MovementImage Source: Zacks Investment ResearchNovo Nordisk currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.See Stocks Now >>This article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks