Hurt but not out

After a very tough period for Novo Nordisk’s share price, we finally have some better news on the product side.
Novo Nordisk achieves a major milestone in obesity care: the U.S. FDA has approved Wegovy as oral GLP-1 pill for chronic weight management in adults with obesity, or overweight with at least one weight-related condition.
U.S. launch is expected in early January 2026, with regulatory submissions underway in Europe and other markets.
In our view, the recent concerns about Novo “losing” the obesity race to Eli Lilly look increasingly overdone. Convenience matters, and an oral option can meaningfully expand the addressable market. Clinical data have also been supportive, with average weight loss in the mid-teens over 64 weeks in the pivotal program.
From a valuation angle, the stock now trades around 13 times earnings, with a dividend yield of 3.8%. We find this valuation attractive for a global leader in obesity and diabetes care. We initiated the position in Q1 2025 and reinforced over the year, Novo is currently a c.2.5% position in our European Value Fund.

Note: This document is provided for information purposes only and does not constitute investment advice, research, an offer, or a solicitation to buy or sell any financial instrument. Any views expressed are those of the author at the time of publication and may change without notice.