Novo Nordisk Shares Surge 6% as Wegovy Pill Sales Outperform and Forecasts Improve

Shares of Novo Nordisk (NVO) spiked over 6% following an upbeat update on its weight-loss drug sales and an increased full-year forecast. The Danish pharmaceutical giant revealed that sales of its Wegovy oral pill far exceeded analysts' expectations during the first quarter, fueling optimism around the company's growth trajectory.

For Q1, Novo reported a 32% jump in sales on a constant currency basis, translating to 96.8 billion Danish kroner ($15.2 billion). Operating profit surged by 65% to 59.6 billion kroner. However, adjusted sales showed a modest 4% decline, while profits fell 6%, reflecting some one-time accounting impacts. Notably, the $4.2 billion reversal related to the 340B Drug Pricing Program significantly skewed reported figures.

The Wegovy pill marked its first quarter on the U.S. market, registering 1.3 million prescriptions and sales of 2.26 billion kroner, nearly double the 1.16 billion kroner expected by analysts. CEO Mike Doustdar highlighted that the brand now holds 65% of all new U.S. prescriptions in its category, attributing this to strong patient tolerance and a "turnaround situation" for the company's weight-loss business.

Despite competition from Eli Lilly's recently launched Foundayo pill, Wegovy's growth continued at double-digit rates. Doustdar emphasized that the oral pill is not cannibalizing their injectable products but has a complementary effect, with both delivery methods finding their place among patients. Injectables gained 12% year-over-year to 18.2 billion kroner, slightly undershooting expectations, while diabetes drug Ozempic sales fell 8% but still beat estimates.

This strong performance prompted Novo Nordisk to lift its 2026 full-year guidance, narrowing the forecast decline of adjusted sales and profits to between 4% and 12%, improved from the prior 5% to 13% range. Doustdar credited ongoing growth in international markets and the weight-loss segment as key drivers behind this upgrade.

The spike in Novo's stock comes amid fierce rivalry with Eli Lilly in the obesity treatment arena, with analysts projecting this market could hit $100 billion by decade's end. Lilly recently announced impressive sales growth for its GLP-1 drugs Mounjaro and Zepbound and raised its own revenue outlook.

Market watchers have been closely monitoring how oral alternatives might disrupt sales of traditional injectable therapies. Early signals from Novo suggest these formats coexist, expanding the patient base rather than splitting it. Still, uncertainties around future prescriptions and sales patterns remain, given the relatively nascent direct-to-consumer dynamics of these weight-loss medications.

As Novo and competitors continue to launch next-generation therapies, the landscape remains dynamic. Novo's Wegovy pill has currently taken the lead, but establishing sustainable dominance will require navigating complex patent, pricing, and patient acceptance hurdles in a highly competitive sector.