Shares in Novo Nordisk (NVO), the Danish pharma rival to U.S.-based Eli Lilly (LLY), rose roughly 3% in Monday’s pre-market trading. This comes as the Wegovy weight-loss drug maker is seeing improved sales momentum.
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New trading tool for AMZN bullsNovo Nordisk’s shares on the Nasdaq Copenhagen Stock Exchange also climbed by more than 3% early Monday. The company’s U.S.-listed shares rose less than 1% in their last trading session.
The Beginning of a Sales Turnaround?
The rise in Novo Nordisk’s stock comes as data indicate that growing demand for the pill version of its Wegovy drug and Eli Lilly’s Foundayo would is set to drive stronger sales of obesity medications. This is expected to help both drugmakers further tap into a market expected to be worth $200 billion by 2030.
Investors might be buying more shares to tap into expected growth in the lucrative obesity market.
Already, sales of the pill — which launched in the U.S. in early January — have helped Novo Nordisk to secure $15.17 billion in revenue during the first quarter of the year, with sales topping analysts’ expectations. The company also improved its full-year guidance, with sales now expected to decline less than previously forecast.
In addition, Novo Nordisk last week added positive developments to its list:
- Amazon (AMZN) has introduced the drugmaker’s Ozempic Type II diabetes pill on its digital pharmacy months after it started to sell the Wegovy pill. To compare, Amazon Pharmacy has been helping to dispense Eli Lilly’s Zepbound obesity drug and the Mounjaro treatment for diabetes since 2024.
- Novo Nordisk is generating massive sales growth for its diabetes and obesity medications in India, the world’s third-largest pharma market by volume of product sold.
Is NVO Stock a Good Buy Now?
On Wall Street, analysts still consider Novo Nordisk’s shares a Hold based on their consensus rating. This breaks down into one Buy and seven Holds issued over the past three months.
Moreover, the average NVO price target of $41.20 suggests roughly 11% downside risk in the months ahead.
