1 Reason I'm Seriously Considering Novo Nordisk as a Buy‑and‑Never‑Sell Obesity Stock
The Motley Fool
by newsfeedback@fool.com (Rich Smith)February 23, 2026
AI-Generated Deep Dive Summary
Novo Nordisk has experienced remarkable success with its diabetes and weight management drugs, particularly Ozempic and Wegovy. These products saw significant growth starting in 2021, driving an impressive 60% increase in stock prices by the end of 2021. The company's sales and profits continued to surge in 2023 with a 35% rise in sales and a 55% jump in net income. However, this momentum was halted in 2024 when Eli Lilly introduced competing drugs like Zepbound and Mounjaro, leading to a decline in Novo Nordisk's market share and a subsequent drop in its stock price from over $142 to around $47—a decrease of nearly 67%.
The article highlights the impact of competition on Novo Nordisk's dominance. Once a leader in GLP-1 receptor agonists, the company faced intense rivalry from Eli Lilly, which quickly eroded its market share. This competitive pressure, combined with increased production costs and investments to scale up manufacturing capacity, has significantly affected Novo Nordisk's financial performance.
For investors interested in finance and biotechnology, this situation underscores the importance of evaluating a company's ability to maintain dominance against new competitors. While Novo Nordisk's strong product pipeline and historical success suggest long-term potential, the current challenges highlight the risks associated with market competition and the need for strategic adaptability. Investors must weigh these factors when considering whether Novo Nordisk remains a sound, long-term investment despite recent setbacks.
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Originally published on The Motley Fool on 2/23/2026