Shares in Danish drugmaking giant Novo Nordisk (NVO) — already down about 26% since the start of the year — are now facing even more pressure after American archrival Eli Lilly (LLY) secured approval for its own weight-loss pill, Foundayo, earlier than expected.
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The move could threaten the strong demand behind Novo Nordisk’s first-to-market pill version of its popular injection-based obesity drug Wegovy. BMO Capital described the demand that greeted the pill’s launch as “record-breaking.”
Eli Lilly Goes Head-to-Head with Novo Nordisk
In response to the U.S. Food and Drug Administration’s (FDA) approval for Eli Lilly’s Foundayo — also known by its scientific name Orforglipron — several analysts have reaffirmed their Buy ratings for the Indiana-based pharmaceutical company, with some raising their price targets.
The new oral medication is a once-daily pill and could have a price tag starting from $149 per month for out-of-pocket patients. The lowest dosage for Novo Nordisk’s version also has the same price, although the Danish drugmaker earlier stated plans to raise the price of the 4 mg dose to $199 on April 15 for such buyers.
According to Morgan Stanley analyst Terence Flynn, Foundayo puts Eli Lilly on equal footing with Novo Nordisk, further pointing out that the former’s pill does not require food or water restrictions. Flynn reiterated his Buy rating on LLY shares and raised his price target from $1,290 to $1,313, predicting roughly 38% upside.
More Sales Pressure for Novo Nordisk?
Similarly, BMO Capital called the Foundayo approval a significant milestone for Eli Lilly’s obesity and metabolic franchise, putting the drugmaker in a position to compete head-to-head with the Wegovy pill. The equity research firm called LLY a Buy and set a price target of $1,300, suggesting about 36% upside.
For Novo Nordisk, the development marks a new challenge, even as the Danish drugmaker expects weaker sales for fiscal 2026. By contrast, Eli Lilly has projected consensus-beating revenue for the ongoing fiscal year.
Is Novo Nordisk a Good Stock to Buy Now?
On Wall Street, analysts now have a Hold consensus rating on Novo Nordisk’s shares. This is based on one Buy and seven Holds issued over the past three months.
However, the average NVO price target of $43 still implies about 18% upside from current trading levels.
