Novo Nordisk Shares Stage Impressive Recovery on Dual Catalysts

Novo Nordisk DK0062498333

Danish pharmaceutical giant Novo Nordisk has engineered a significant rebound in its share price by late January 2026, following a challenging prior year. The resurgence is attributed to two major positive developments: the successful U.S. launch of a new oral weight-loss tablet and a pivotal patent victory in China. Since the start of the year, the company's equity has advanced by approximately 26 percent.

In a parallel development to its U.S. progress, Novo Nordisk secured a crucial legal win. China’s Supreme People’s Court upheld the patent for semaglutide, the active ingredient in both Ozempic and Wegovy. This ruling safeguards the company's exclusivity in a major market with substantial long-term growth potential.

Oral Formulation Sees Robust Early U.S. Demand

The launch of an oral tablet version of Wegovy is demonstrating strong early momentum. U.S. prescription data reveals substantial physician and patient interest. During its first full week of availability, the medication received 18,410 new prescriptions. Demand remained robust and stable in the subsequent week, with over 18,000 prescriptions filled.

This performance holds strategic importance for Novo Nordisk, which is engaged in intense competition with Eli Lilly for market share in the lucrative GLP-1 drug segment. The tablet format is viewed as a potential advantage over injectable counterparts, possibly broadening the treatment's appeal to additional patient groups.

Valuation and Upcoming Financial Report

From a valuation perspective, a notable disparity exists between Novo Nordisk and its main competitor. Novo Nordisk shares are currently trading at a price-to-earnings (P/E) ratio of around 17, a significant discount to Eli Lilly's multiple, which exceeds 50. Reinforcing a positive outlook, analysts at JP Morgan reiterated their "Buy" rating on January 30.

The market now awaits the company's fourth-quarter and full-year 2025 results, scheduled for release on February 4, 2026. Investors will be looking for commentary on whether the strong prescription trends seen in January will lead management to raise its revenue guidance for the new fiscal year.