Novo Nordisk A/S

A survey by the industry group Business Group on Health found that about 14% of US employers plan to end insurance coverage for obesity drugs known as GLP-1 receptor agonists by 2027. The reason is rising healthcare costs, and if companies do not implement cost-containment measures, healthcare costs in 2027 are projected to increase by 9.2% year-over-year. About two-thirds of responding companies confirmed expanded use of GLP-1 drugs. Notable products include Novo Nordisk's Wegovy and Eli Lilly's Zepbound, with list prices of $1,349.02 and $499 per month, respectively. Ellen Kelsay of the group said, "Companies are finding it difficult to budget and forecast costs." Drug costs account for 25% of total corporate healthcare spending and are expected to rise 12% year-over-year by 2027. The percentage of companies covering GLP-1 drugs for obesity fell from 72% in 2025 to 60% in 2026.

Eli Lilly shares rose about 1.3% to $1,262.60 Tuesday morning as its once-daily weight-loss pill Foundayo launched in Britain's private-prescription market, marking the company's first European rollout for the drug. The launch comes before Lilly secures broader access through England's National Health Service. Patients taking the highest dose in Lilly's pivotal U.S. obesity trial lost an average of 27 pounds. Lilly's second-quarter revenue surged 48% to $23 billion, prompting management to raise its full-year revenue forecast to between $85 billion and $87 billion. The stock trades 16.89% below its $1,520 GF Value estimate, and the company now faces competition from Novo Nordisk's oral Wegovy.

Eli Lilly and Novo Nordisk reported sharply contrasting second-quarter 2026 results, with Lilly posting 48% revenue growth and raising full-year guidance while Novo cut nearly 12,000 employees and took a DKK 6.3 billion impairment. Lilly's Mounjaro and Zepbound combined for $14.9 billion in quarterly sales, with China up 93% and rest of world up 136% at constant currency, and the company now controls roughly 6 out of 10 U.S. obesity prescriptions. Novo's adjusted sales rose 7% at constant exchange rates to 78.5 billion Danish kroner, but adjusted gross margin fell to 78.2% from 82.7% a year earlier, and its oral Wegovy pill reached over 5 million total prescriptions with about 90% of the oral obesity market. Lilly's triple-acting GLP-1 retatrutide hit primary endpoints across three Phase 3 trials with weight loss approaching bariatric surgery levels at the highest doses, and the company targets a U.S. BLA submission in Q1 2027, while full-year revenue guidance moved to $85 to $87 billion.

Eli Lilly has guided fiscal 2026 revenue between $85 billion and $87 billion, putting the $100 billion revenue milestone within reach. The company's Q2 2026 revenue of $22.97 billion grew 47.67% year over year and beat consensus by 11.06%, while EPS of $8.38 beat by 27.27%. Mounjaro delivered $9.94 billion, up 91%, and Zepbound added $4.93 billion. 24/7 Wall St. maintains a buy rating and a $1,480.01 price target, implying 17.89% upside, with a bull-case target of $1,704.19. Retatrutide's Q1 2027 BLA and orforglipron's global rollout are key catalysts.

Hims & Hers Health and Novo Nordisk both saw their shares drop after reporting strong growth, as investors focused on rising costs in the weight-loss pill market. Hims & Hers posted second-quarter revenue of $753.2 million, up 38% and above the $699 million analysts expected, and raised its full-year revenue outlook to $3.1 billion to $3.3 billion, but swung to a $127.9 million net loss from a $43.5 million profit a year earlier. Novo Nordisk raised its annual guidance to a range of adjusted sales and operating profit down 6% to flat, versus a prior range of down 4% to 12%, yet its Wegovy pill sales of 3.22 billion kroner missed the 3.33 billion kroner analysts expected. Hims & Hers shares fell over 2% on Tuesday, while Novo Nordisk shares dropped about 6% a week earlier.

Eli Lilly's once-daily oral GLP-1 drug Foundayo has been approved by Britain's Medicines and Healthcare products Regulatory Agency for both weight management and type 2 diabetes, making the United Kingdom the first European country to authorize the tablet for both indications. The approval marks Lilly's first European regulatory win for the oral therapy and extends its rollout beyond the United States, where the drug has been building commercial momentum since its April launch. Novo Nordisk's oral Wegovy had been the only GLP-1 pill cleared in the UK since June, and Foundayo's approval ends that exclusivity while intensifying competition in the rapidly expanding weight loss drug market. Foundayo is designed to be taken once daily without food or water restrictions, whereas oral Wegovy must be taken on an empty stomach with a small amount of water and a waiting period before eating or taking other medications. Lilly plans to launch Foundayo in the UK through private prescription later this month at a lower list price than Mounjaro, which is listed at £330 for a month's supply, though the drug is not yet available through the NHS.

Eli Lilly shares climbed 5.8% after the company reported second-quarter results that beat expectations, with revenue up 48% year over year to $22.97 billion and adjusted EPS up 33% to $8.38. Mounjaro and Zepbound remained the primary growth drivers, and the company raised its sales outlook for the second time this year. Newer medicines across immunology, oncology, and neuroscience also contributed, while the newly launched oral GLP-1 pill Foundayo generated $98 million in its first full quarter. Lilly plans to submit its next-generation candidate retatrutide to the FDA in the first quarter of 2027, and the company has announced more than $20 billion in biotech deals this year. Despite premium valuation and pricing pressures, Zacks maintains a Hold rating on the stock.

Eli Lilly's weight-loss pill Foundayo won UK approval on August 10, becoming the first European country to clear the drug for both weight management and type 2 diabetes. It is only the second GLP-1 pill approved in Europe, arriving two months after Novo Nordisk's Wegovy pill got its own UK approval in June. Foundayo can be taken at any time of day without food or water restrictions, unlike the Wegovy pill, which must be taken on an empty stomach with a 30-minute wait before eating. Lilly said the drug will launch in the UK later this month through private prescription, priced below Mounjaro's roughly £330 monthly list price. Foundayo already brought in $98 million in US sales last quarter, and Lilly's overall 2026 revenue guidance now sits at $85 billion to $87 billion, up from its earlier forecast, due to strong demand for its weight-loss and diabetes drugs. The Wegovy pill has already topped 5 million prescriptions since its January launch, and roughly 300,000 UK patients started taking it within its first three weeks there, according to CEO Mike Doustdar. Novo Nordisk's second-quarter sales rose 3% in constant currency to 78.49 billion kroner, with adjusted sales up 7%, but Wegovy pill sales of 3.22 billion kroner missed the 3.33 billion kroner analysts expected. Novo has also sued Eli Lilly over allegedly deceptive advertising, a sign of how heated this rivalry has become.

Scholar Rock Holding Corporation is removing the Catalent Indiana fill-finish facility, now part of Novo Nordisk, from its apitegromab Biologics License Application after the FDA classified an April 2026 site inspection as Official Action Indicated. The company pivoted exclusively to its second fill-finish facility, submitted the data package ahead of schedule, and confirmed robust commercial supply, keeping the apitegromab BLA on track for its September 30, 2026 PDUFA date. Scholar Rock reported a narrower-than-expected Q2 2026 net loss of $0.84 per share, or $109.9 million, and exited the quarter with $492 million in cash. BMO Capital raised its price target to $76 from $70, citing confidence ahead of the apitegromab decision. Novo Nordisk, the parent of the Catalent site, reported an 11% increase in adjusted operating profit to DKK 33.38 billion, but its reported operating profit dropped 16% to DKK 27.06 billion due to non-cash impairment charges of DKK 6.3 billion and unfavorable comparisons to prior-year US 340B rebate provision reversals, leading Citi to lower its price target to DKK 310 from DKK 330 and call the quarter messy.

Novo Nordisk shares slipped about 1% Thursday morning as CEO Mike Doustdar sought to reframe the obesity drug competition as a multi-segment market rather than a winner-takes-all battle against Eli Lilly. Doustdar told Reuters that oral Wegovy already controls roughly 90% of the oral GLP-1 market, and he now believes pills could eventually take around half of the overall market, up from Novo's earlier view that oral drugs could exceed one-third of GLP-1 use by 2030. The obesity market could top $100 billion annually by 2030, and Novo is positioning a deep lineup including oral Wegovy and CagriSema, which delivered roughly 23% average weight loss in clinical testing versus more than 25% cited for Lilly's Zepbound. Novo still aims to launch CagriSema next year, while the stock trades at $45.93, about 57.74% below its GF Value estimate of $108.68.

Novo Nordisk faces fresh competitive pressure after the UK's MHRA approved Eli Lilly's oral weight loss therapy Foundayo and Amazon Pharmacy launched a $50 per month Medicare weight loss drug program that includes Novo Nordisk and Eli Lilly medications. The UK approval adds a non-injectable option alongside Novo Nordisk's GLP-1 based obesity drugs and could affect demand patterns if Foundayo is adopted in public healthcare settings. The Amazon program highlights changing access and pricing dynamics in obesity care that may influence volumes and reimbursement for Novo Nordisk's flagship treatments. Novo Nordisk, a pharmaceuticals group with a DKK1.3 trillion market cap, focuses on researching, manufacturing and distributing treatments for chronic conditions such as obesity and diabetes.

Novo Nordisk reported second-quarter 2026 sales of $12.21 billion, up 3% at constant exchange rates, but its key GLP-1 brands Ozempic and Wegovy injectable were flat year over year, while Eli Lilly's Mounjaro and Zepbound surged 91% and 46% respectively. Novo Nordisk's oral GLP-1 franchise, including the Wegovy pill and Ozempic pill/Rybelsus, generated $1.31 billion in the quarter, but Lilly's newly launched oral pill Foundayo posted $98 million and could erode Novo's oral lead. Novo Nordisk has sued Lilly over advertising for Mounjaro and Zepbound, and raised its 2026 guidance to a 0-6% decline in adjusted sales and operating profit at constant exchange rates, from a prior 4-12% decline. Smaller biotechs Viking Therapeutics and Structure Therapeutics are also advancing oral GLP-1 therapies, with Viking planning phase III for VK2735 in the fourth quarter of 2026 and Structure dosing patients in its late-stage ACCOMPLISH program for aleniglipron.

Eli Lilly is pulling ahead of Novo Nordisk in the obesity drug market, reporting a 56% jump in first-quarter 2026 revenue to $19.8 billion, driven by strong demand for its GLP-1 medicines Mounjaro and Zepbound. Net income reached $7.4 billion, or $8.26 per share, and the company raised its full-year revenue guidance by $2 billion to a range of $82.0 billion to $85.0 billion. In contrast, Novo Nordisk's adjusted sales declined 4% at constant exchange rates after excluding a $4.2 billion non-recurring provision reversal, despite the launch of the Wegovy oral pill and FDA approval of Wegovy HD. The financial divergence comes as Novo Nordisk filed a lawsuit accusing Eli Lilly of false advertising, claiming its ads use outdated trial data to compare tirzepatide against lower doses of semaglutide, while Lilly maintains its commercials are truthful and based on the SURMOUNT-5 head-to-head trial. Hedge fund data shows 132 funds held Eli Lilly shares in the first quarter, compared with 55 for Novo Nordisk.

Eli Lilly appears better positioned than Novo Nordisk to benefit from America's push for domestic drug manufacturing, as its $55 billion in US capital commitments since 2020 and participation in the FDA's new PreCheck Pilot Program give it a strategic advantage. Lilly is building a broad domestic manufacturing platform across multiple drug technologies, while Novo Nordisk, despite a substantial US footprint including nearly $6 billion invested in North Carolina, is racing to localize more of its supply chain. The Trump administration's policies, including Most-Favored-Nation pricing agreements and the FDA's PreCheck initiative, increasingly reward companies that manufacture inside the United States. Lilly's Lebanon, Indiana facility was among the first selected for the PreCheck program, potentially accelerating regulatory approvals. Novo Nordisk's more geographically diversified network may become less valuable if US policy continues to favor domestic production.

Eli Lilly, Novo Nordisk, and Pfizer were among the notable healthcare companies reporting quarterly results this week. Eli Lilly posted better-than-expected second-quarter results driven by its GLP-1 drugs, with revenue of $23 billion beating consensus by $2.3 billion, and raised its full-year revenue guidance to a range of $85.0 billion to $87.0 billion, though the midpoint fell short of the $85.4 billion consensus. Novo Nordisk lifted its full-year outlook for the second time this year on GLP-1 strength, now expecting sales and operating profit to decline by no more than 6% at constant exchange rates, but its U.S.-listed shares fell as much as 6%. Pfizer topped second-quarter expectations with adjusted earnings per share of $0.77 and revenue of $15.03 billion, and raised its full-year revenue guidance by $500 million at the midpoint to $60.5 billion to $62.5 billion. Merck also reported better-than-expected second-quarter results and raised its full-year revenue guidance to $66.3 billion to $67.3 billion, but lowered its adjusted earnings per share forecast to $2.66 to $2.76, below the $2.76 consensus, due to charges from its Terns acquisition. Bristol-Myers Squibb fell after a Reuters report said there are no discussions with AstraZeneca about a potential deal, contradicting earlier reports of preliminary merger talks. Integer Holdings agreed to be acquired by KKR in an all-cash deal valued at approximately $5.7 billion, with stockholders receiving $127.00 per share. The S&P 500 Health Care Index Sector gained 1.92% during the week, with Charles River Laboratories and Veeva Systems among the top gainers, while DaVita and Insulet were among the top losers.

Pfizer's investigational weight-loss drug berobenatide achieved nearly 16% non-placebo-adjusted weight loss in a 32-week phase 2b study with no plateau observed, positioning it as a potential competitor to Novo Nordisk's Wegovy and Eli Lilly's Zepbound. In a separate 72-week head-to-head study, Zepbound delivered 20.2% weight loss versus Wegovy's 13.7%. Berobenatide could be administered monthly, which may attract patients even if its efficacy is slightly lower than weekly alternatives, and Pfizer plans phase 3 trials across weight management and obesity-related comorbidities including obstructive sleep apnea and knee osteoarthritis. The anti-obesity market could reach $190 billion by 2035, up from $79 billion last year, according to some estimates. Pfizer acquired Metsera, the original developer of berobenatide, in November, and the stock has since moved sideways.

European stocks closed at a fresh all-time high on Wednesday, with the STOXX 600 ending at 657.14 points, up 0.04%. France's CAC-40 closed at 8,669.30 points, gaining 0.03%, while London's FTSE 100 finished at 10,888.30 points, up 0.08%. Germany's DAX slipped 0.29% to 26,126.30 points. The market continued to focus on robust corporate earnings despite lingering concerns over Middle East tensions. Glencore jumped 4.1% after reporting an 86% surge in first-half profit that beat expectations. Heineken rose 2.2% after its first-half profit came in ahead of forecasts. Novo Nordisk fell 4.3% even after raising its full-year sales and profit outlook, as investors worried that sales of its new Wegovy pill slightly missed estimates and that trial results for CagriSema, a next-generation obesity drug, faced delays. Novo Nordisk is striving to reclaim market share from Eli Lilly in the fast-growing obesity drug market. Although the company was Europe's most valuable listed firm in 2024, it has since lost significant market value.

Novo Nordisk raised its full-year outlook but shares still fell more than 4% in Copenhagen trading as investors focused on pipeline setbacks and competition. Management now expects 2026 adjusted sales and operating profit to range from flat to down 6% at constant exchange rates, an improvement from the prior forecast of a 4% to 12% decline. The company booked DKK6.3 billion in noncash pipeline impairments, including DKK4 billion tied to monlunabant, and its ZEUS cardiovascular trial failed to hit its primary endpoint. Adjusted sales rose 7% at constant exchange rates to DKK78.49 billion, while adjusted operating profit climbed 11% to DKK33.39 billion, and the oral Wegovy launch gained traction with weekly U.S. prescriptions topping 265,000 by mid-July. The stock trades about 67.6% below its GF Value estimate of $139.24, reflecting collapsed expectations.