NVO Stock Gets Boost From FDA Approval, But What Lies Ahead for Novo Nordisk?

For Novo Nordisk shareholders, the past few days have brought a significant development that could reshape the company's future. On December 23, 2025, the U.S. Food and Drug Administration approved the company's Wegovy oral pill for weight management — the first of its kind in the GLP-1 class. This milestone comes at a time of both opportunity and challenge for the Danish pharmaceutical giant, as it navigates a competitive obesity drug market and investor concerns about its valuation and growth prospects according to market analysis.

Why Novo Nordisk Is in the News

Novo Nordisk's (NVO) Wegovy has long been a flagship product in its obesity and diabetes portfolio. Until now, the drug was only available in injectable form. The new oral version, however, offers a major convenience factor for patients, potentially expanding the drug's market reach. In clinical trials, the oral Wegovy over 64 weeks, .

The FDA's greenlight has already had a visible impact. Shares of NVO on the news, . The company plans to launch the product in the U.S. in early January 2026 and has also submitted the drug for approval in Europe according to market analysis.

What the FDA Approval Means for the Company

This approval is more than just a regulatory win — it's a strategic shift. By introducing an oral version of a GLP-1 drug, Novo Nordisk is responding to a growing market that favors non-invasive options. The obesity drug market has been booming, with companies like Eli Lilly (LLY) also seeing blockbuster success with products like Zepbound and Mounjaro.

Still, Novo Nordisk has faced recent headwinds. Earlier in 2025, the company cut its full-year sales and profit guidance due to weaker-than-expected performance of Wegovy and Ozempic. Part of the slowdown has been attributed to rising competition and the arrival of combination therapies and other oral alternatives.

Recent Trends and Share Price Volatility

Over the past year, NVO's stock has been on a rollercoaster. As of late December 2025, according to financial data. The drop has left some investors questioning whether the company is undervalued or simply overcorrecting for growth slowdowns and pricing pressures.

Despite the price decline, Novo Nordisk's fundamentals remain strong. The company continues to grow revenue and profits, and its pipeline for obesity and diabetes treatments remains robust. That said, investors are now factoring in higher execution risk, especially with new drug launches and pricing negotiations in the U.S. according to financial analysis.

Looking Ahead: Market Potential and Risks

With the FDA's approval of Wegovy in pill form, Novo Nordisk is well-positioned to regain some market share and compete more directly with Eli Lilly and other players in the GLP-1 space. The drug's oral format could attract a broader patient base, particularly those who are hesitant to use injectables. Meanwhile, the company has also filed for FDA approval of , a combination therapy that showed in phase 3 trials.

However, the path forward isn't without challenges. Pricing pressures in the U.S., which accounts for a large portion of Novo Nordisk's revenue, could limit the drug's profitability. In addition, the rapid pace of innovation in the obesity drug sector means that Novo Nordisk will need to continue launching new products to stay ahead. If it doesn't, investors may remain cautious.

At the end of the day, today's approval is a positive step, but it's just one piece of a larger puzzle. For investors, the real question is whether Novo Nordisk can turn this momentum into sustained growth — and whether the stock price is starting to reflect the company's long-term potential.