Novo Nordisk A/S (NVO)

Eli Lilly and Novo Nordisk, key players in the weight-loss drug market, showed vastly different Q2 2026 results. Lilly reported strong 48% revenue growth and dominates the U.S. obesity prescription market, fueled by its Mounjaro and Zepbound drugs, and has promising pipeline candidates like Retatrutide. In contrast, Novo Nordisk experienced lower 7% sales growth, reduced gross margins, and workforce cuts, despite its Wegovy pill showing strong launch volumes.

Novo Nordisk is proceeding with its DKK 15 billion share buyback program for B shares, which began on February 4, 2026. The company repurchased over 1 million B shares between August 17-21, 2026, bringing the total buybacks under the specific program to DKK 4.59 billion and the overall program to DKK 8.39 billion. Novo Nordisk now holds 1.0% of its share capital as treasury stock, demonstrating its commitment to returning capital to shareholders.

Novo Nordisk has sued Eli Lilly over allegedly misleading advertisements for GLP-1 medications, claiming Lilly's ads compare its tirzepatide (Zepbound, Mounjaro) to lower, older doses of semaglutide (Wegovy, Ozempic) while omitting newer, higher-dose formulations. Pharmacists are advised to counsel patients on the importance of dose-response curves and the lack of head-to-head trials comparing the highest doses of both drugs, as direct-to-consumer ads often oversimplify complex efficacy data.

Billionaire Stanley Druckenmiller's Duquesne Family Office has invested in Rhythm Pharmaceuticals, a biotech company focusing on rare forms of obesity that Eli Lilly and Novo Nordisk do not target. Rhythm Pharmaceuticals' drug, Imcivree, treats obesity caused by specific protein deficiencies and hypothalamic obesity, and it shows promise for Prader-Willi syndrome. While the target market is niche, the company faces less competition, making it a potentially strategic investment despite inherent risks.

The GLP-1 weight loss drug market is intensely competitive, with Eli Lilly and Novo Nordisk vying for dominance. While drug performance and supply-side strategies are crucial, new surveys indicate that affordability, physician preferences, and patient perceptions significantly influence market share. High costs and social stigma pose challenges, suggesting that success will depend not only on drug efficacy but also on how these medications are viewed and made accessible to patients.