Novo Nordisk (NVO) Shares Soar 3.45% Amid Market Competition

Novo Nordisk (NVO) shares surged 3.45% intraday, reaching their highest level since March 2025, marking a 2.73% increase for the day and a 5.25% rise over the past three days.

The strategy of buying NVO shares after they reached a recent high and holding for one week resulted in a 12.49% return over the past five years, compared to a benchmark return of 47.52%. The strategy's Sharpe ratio was 0.19, with a maximum drawdown of -41.42% and a volatility of 29.03%. The CAGR was 5.56%.

Novo Nordisk is facing intense competition in the obesity drug market, particularly from Eli Lilly's GLP-1 treatment, Zepbound. This rivalry has affected Novo Nordisk's market share, which currently stands at 51% of a roughly $28 billion market, according to a recent analysis.

Despite these challenges, Novo Nordisk has taken strategic steps to strengthen its position. The company has acquired contract drug manufacturer Catalent to gain more control over the production of Wegovy. Additionally, Novo Nordisk is exploring new indications for Wegovy, including its potential use in treating liver disorder metabolic dysfunction-associated steatohepatitis (MASH), which could drive future growth.

Legal and regulatory concerns also loom over Novo Nordisk. The company's weight loss drug semaglutide has been linked to a rare eye condition called NAION, as flagged by the European Medicines Agency (EMA). This has resulted in over 1,200 lawsuits alleging that Novo Nordisk downplayed the risks associated with semaglutide.