Denmark-based Novo Nordisk (NVO) is expanding beyond blockbuster drugs like Wegovy with a new partnership with OpenAI. The collaboration aims to use AI to speed up drug discovery and development, signaling a broader push by the pharma giant to tap advanced technology for its next phase of growth. However, there may be more to this move. Novo has been losing ground to rival Eli Lilly (LLY), and this AI partnership could be part of its strategy to regain a competitive edge.
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For context, Novo is a pharmaceutical company focused on diabetes, obesity, and rare disease treatments, best known for drugs like Wegovy and Ozempic.
Novo Nordisk to Use OpenAI Tech
Novo Nordisk stated that its partnership with OpenAI will use AI to analyze complex data, identify promising drug candidates, and improve efficiency across manufacturing, supply chains, distribution, and corporate operations. The company said pilot programs will begin across research and development, manufacturing, and commercial operations, with full integration planned by the end of 2026.
Additionally, the company added that OpenAI will also help train its global workforce, improving AI skills and boosting productivity across departments. CEO Mike Doustdar also clarified that the partnership is not aimed at cutting jobs, but rather at increasing efficiency and slowing the pace of future hiring.
More broadly, drugmakers are increasingly adopting AI to streamline time-consuming parts of development—such as finding clinical trial participants, selecting sites, and preparing regulatory filings. However, industry executives note that AI has not yet fully delivered on the more difficult task of discovering breakthrough new drugs.
Novo Tries to Catch Up in Obesity Drug Race
Novo Nordisk is exploring new strategies to regain momentum in the intensifying obesity drug battle with Eli Lilly. The competition has heated up after Lilly recently secured U.S. approval for its weight-loss pill Foundayo, following Novo’s launch of oral Wegovy.
Analysts expect the global weight-loss drug market to exceed $100 billion in annual revenue over the next decade, raising the stakes for both companies.
Notably, Novo Nordisk expects weaker sales in fiscal 2026, while Eli Lilly has forecast revenue that could beat market expectations for the current fiscal year.
Is Novo Nordisk a Good Stock to Buy Now?
According to TipRanks, NVO stock has received a Hold consensus rating based on one Buy, seven Holds assigned in the last three months. The Novo Nordisk share price forecast stands at $43, which is around 13.2% above the current trading level.
