Novo Nordisk Streamlines Operations as Oral Wegovy Data Reinforce Obesity Strategy

Novo Nordisk sells Parkinson's candidate to focus on metabolic drugs; oral Wegovy shows 21.6% weight loss at 64 weeks, driving revenue growth and a stock rebound.

Novo Nordisk has exited cell therapy altogether, selling rights to its Parkinson’s candidate STEM-PD to the Boston-based biotech Cellular Intelligence. The startup, backed by the Chan Zuckerberg Initiative among others, plans to use artificial intelligence to accelerate development. In return, the Danish drugmaker has taken an equity stake and secured rights to future milestone payments and royalties. Financial terms were not disclosed. The move completes a retreat that began last October, when the company shut its in-house cell therapy unit and cut roughly 250 jobs. STEM-PD had already received the FDA’s fast-track designation.

The divestiture frees up capital for Novo Nordisk’s core metabolic franchise, where the oral version of Wegovy is generating fresh momentum. At the European Congress on Obesity in Istanbul, the company unveiled detailed results from the Phase?3 OASIS?4 trial. Nearly a third of adult patients responded early to the treatment, losing an average of 13.2% of their body weight within 16 weeks. By the end of the 64?week study, that figure reached 21.6% — a level that underscores the durability of the oral therapy. The drug has already racked up more than two million prescriptions since the start of the year.

Beyond the scale of weight loss, the data spoke to broader health benefits. Among patients who reported physical limitations at baseline, eight out of ten saw their mobility double, making everyday tasks such as bending or standing for long periods markedly easier. Novo Nordisk also presented subgroup analyses showing consistent weight reduction across all stages of menopause, while early signals hinted at protective effects on the heart and a reduction in migraine episodes. The company’s leadership sees these comorbidities as key to differentiating its GLP?1 portfolio amid mounting competition.

The operational strength is evident in the numbers. First?quarter revenue topped $15 billion, comfortably beating market forecasts, and management raised its full?year guidance to as much as $46.2 billion. Yet the stock has had a turbulent ride. Year?to?date, shares are down about 13%, and over the past twelve months the decline is roughly 34%. The recent session closed at €39.27, just above the 50?day moving average. On a one?month view, however, the picture brightens: the equity has rebounded roughly 13% from its March trough, a recovery supported by the latest clinical data.

Institutional sentiment remains mixed. Asset manager MGO One Seven trimmed its position substantially in the prior quarter, reflecting caution despite the bullish fundamentals. Analysts, on average, rate Novo Nordisk a “hold” and peg the target price at around $65. The assessment weighs the company’s current dominance in the GLP?1 market against intensifying price pressure and an increasingly crowded field. Shedding peripheral assets like Parkinson’s research, the argument goes, gives management the financial and strategic room to defend that leadership.

The OASIS?4 results also reinforce the logic behind the pivot. With a long?acting oral formulation that delivers weight loss comparable to injectable rivals, Novo Nordisk is betting that convenience will sustain demand even as new entrants emerge. The company’s decision to double down on metabolic science — and cut loose promising but non?core projects like STEM?PD — signals a singular focus on the franchise that now drives its growth. Whether that bet is enough to reverse the broader slide in the share price will depend on how effectively it can translate clinical wins into market share gains.