Novo Nordisk’s Oral Wegovy Surges as Market Share Battle Intensifies
Strong demand for the new pill formulation contrasts with a 40% share price decline over three years, while dividend yields offer a stark divergence from rival Eli Lilly.
Novo Nordisk has reported that its oral formulation of Wegovy generated 1.3 million prescriptions in the first quarter of 2026, a figure that climbed to two million within a month. The company stated that the new pill is expanding the overall GLP-1 market rather than cannibalising its existing injectable product, outperforming analyst expectations. This rapid uptake highlights a shift in consumer preference, with many patients favouring oral administration over injections.
The pharmaceutical landscape has been defined by intense competition between Novo Nordisk and Eli Lilly. While Eli Lilly launched its own GLP-1 options, Mounjaro and Zepbound, and saw its stock rise significantly over the past three years, Novo Nordisk’s shares have fallen 40% during the same period. Despite this divergence in stock performance, Novo Nordisk maintains a higher dividend yield of 3.9% with a payout ratio of approximately 40%, compared to Eli Lilly’s 0.6% yield.
Novo Nordisk was the first to market with a GLP-1 weight-loss drug but struggled to meet demand for its injectable version, allowing compounders to enter the US market. This supply constraint provided Eli Lilly with an opening, and its drugs were perceived as more effective, leading to stronger financial results for the competitor. Novo Nordisk has since been playing catch-up, though the introduction of the oral pill appears to be altering that dynamic.
Management noted that the oral Wegovy pill is more effective than Eli Lilly’s GLP-1 pill, providing a marketing and effectiveness edge. The company expects volume growth to offset price pressures over the long term as the pill draws more customers into the GLP-1 space. This early success suggests that the market may be undervaluing Novo Nordisk’s potential as it works through a transition year.
Despite the positive data, Novo Nordisk warned that 2026 will be challenging due to patent expirations in India and price cuts in the United States. These factors are expected to weigh on the top line, even as the company navigates a highly competitive industry. Investors are now assessing whether the strong sales of the weight-loss pills signal that conditions are not as dire as the recent share price decline suggests.
