Novo Nordisk Achieves Breakthrough with Oral Weight-Loss Drug Approval

Novo Nordisk DK0062498333

The U.S. Food and Drug Administration (FDA) has granted approval to Danish pharmaceutical giant Novo Nordisk for the world's first oral GLP-1 tablet designed for weight management. This pill form of Wegovy is slated for a U.S. launch in January 2026, potentially reshaping the competitive dynamics of the multi-billion dollar obesity treatment sector.

This regulatory milestone stems from the OASIS-4 trial data. Patients taking the once-daily oral semaglutid (25 mg) achieved an average weight reduction of 16.6% after 64 weeks. This efficacy matches that of the injectable version and surpasses the 12.4% weight loss demonstrated by Eli Lilly's experimental rival drug, Orforglipron, in its studies. Lilly's product is not anticipated before late 2026.

Novo Nordisk intends to pursue a direct-to-consumer pricing strategy, setting a cash price of $149 per month. The company aims to bypass insurance barriers and capture market share rapidly with this approach. A regulatory submission has already been filed in Canada.

Attractive Valuation Amidst Renewed Momentum

Market reaction to the news was positive. On December 24, Novo Nordisk shares climbed 1.84% to $52.56. Over a single week, the stock advanced more than seven percent. Analysts at HSBC raised their price target from $47 to $54, citing a "significant advancement" for the company.

Despite this progress, the stock's valuation remains noteworthy. It trades at a price-to-earnings (P/E) ratio of approximately 15, which sits well below its historical average of 25 and the current industry benchmark. Following a challenging year where the stock lost as much as 44% of its value at one point, this tablet approval could trigger a fundamental re-rating by investors.

Execution and Supply Chain in Focus for 2026

The oral formulation opens access to a new patient demographic that is averse to injectable therapies. The January 2026 market debut will serve as a critical test for the aggressive pricing model and the resilience of Novo Nordisk's supply chains—an area where the company has faced recent difficulties. Financial results for the fourth quarter are expected to provide clearer projections on the product's future revenue impact.