Novo Nordisk Navigates Conflicting Signals as Wegovy Pill Surges But Employer Reimbursement Tightens

Oral Wegovy sets record US prescriptions while Cigna drops GLP-1 coverage; Goldman Sachs raises target but stays neutral; shares down 19% YTD.

The Danish drugmaker finds itself caught between two sharply diverging narratives. On one side, the oral version of Wegovy is racking up record prescription volumes since its US launch in early January, with weekly scripts already topping 200,000 by mid-April—the strongest GLP-1 volume debut in company history. On the other, a key US health insurer is pulling coverage for the very same class of drugs, amplifying employer anxiety over long-term costs.

Cigna has announced it will drop reimbursement for GLP?1 weight-loss medicines from its employee health plan effective July 1, cutting off roughly 67,700 staff. Existing users can refill prescriptions through the end of June, but out?of?pocket payments will no longer count toward deductibles. The diabetes indication remains untouched. The move is emblematic of a broader trend: a recent survey by the Business Group on Health found that nearly eight in ten employers view GLP?1 therapies as a major cost driver, and many are now weighing stricter coverage rules. The structural dilemma is clear—these are maintenance therapies, and stopping them often leads to weight regain, locking employers into a long-term bill for a large slice of their workforce.

Yet Novo Nordisk is pushing aggressively to expand the pill’s global footprint. On June 3, the company launched the oral Wegovy in the United Arab Emirates, its first market outside the US. The Emirates Drug Establishment approved it not just for weight management but also for reducing cardiovascular risk—a broader claim that strengthens the drug’s medical positioning. The authorization rests on data from the OASIS?4 trial, where participants lost an average of 17% of body weight. In the first quarter alone, the Wegovy tablet racked up 2.26 billion Danish kroner in sales, representing roughly 3% of total group revenue. Novo Nordisk plans to introduce the pill in additional markets in the second half of 2026, aiming to offset some of the pricing pressure building in the United States.

Against this volatile backdrop, Goldman Sachs raised its price target on Novo Nordisk shares to 305 Danish kroner from 263, but left its rating at “Neutral.” The message is measured: the valuation looks a shade more attractive, but not enough to turn bullish. In German trading, the stock stood at €36.20—down nearly 19% year?to?date and more than 42% below its level a year ago. The 52?week high of €70.13 is now a distant memory. While the share price has crept back above its 50?day moving average, it remains firmly under the 200?day line, underscoring the fragility of any recovery. Novo Nordisk itself is trying to support the stock through a buyback program that has already repurchased almost 17.9 million B?shares at an average price of 263.47 kroner, for a total of roughly 4.7 billion kroner. The full program is capped at 15 billion kroner over twelve months.

Competition remains the sharpest edge. Novo Nordisk commanded a 59.6% share of the global obesity market by volume in 2025 and a 45.8% value share in GLP?1 diabetes therapies. But in the United States, Eli Lilly has overtaken it: Novo Nordisk’s share of the US semaglutide market now stands at around 37.4%. That reality tempers any excitement over new product launches. The gross margin of 81% and net margin of 33% provide some cushion, but institutional investors are already trimming exposure. Peapack Gladstone Financial Corp cut its position by 25.5% in the fourth quarter, leaving it with 73,091 shares worth about $3.72 million.

The next major test comes this week. The American Diabetes Association’s annual conference runs from June 5 to 8, and Novo Nordisk is set to present Phase?3 data from the REIMAGINE study of CagriSema—an asset that disappointed earlier when it failed to show non?inferiority against a rival obesity product. On June 7, management will host a live webcast to discuss strategy, operational targets, and financial forecasts. For investors, that will be the first substantive look at the company’s prospects beyond the reimbursement noise. Whether the Wegovy pill’s strong start and the global rollout can outweigh the tightening of employer coverage in Novo Nordisk’s home market remains the central question.