Novo Nordisk, led by CEO Maziar Mike Doustdar, faced a tumultuous start to 2026. The Danish drugmaker launched the first-ever GLP-1 pill for obesity but now battles to protect market share against upstart telehealth provider Hims & Hers. Novo’s 2026 outlook disappointed investors, contrasting sharply with Eli Lilly’s positive forecast.
Novo Nordisk sued Hims & Hers for patent infringement and received a warning from the FDA over misleading advertising. Novo faces challenges from cheaper compounded versions of semaglutide. CEO Doustdar plans to tackle the compounding issue, maintain demand for their obesity pill, increase prescription volumes, and launch new treatments.
Doustdar remains optimistic for 2026 despite challenges. Novo has sued Hims & Hers over compounded versions of their drugs, leading to legal and regulatory scrutiny. Telehealth firms have profited from selling cheaper versions of Novo’s drugs, prompting Novo to take legal action and push back against compounding.
Regulators are cracking down on compounding practices, which could benefit Novo in the long run. The government’s acknowledgment of the compounding issue is seen as a positive step. Novo aims to control the compounding problem, which could improve market share and sales projections. Novo Nordisk faces stiff competition from Eli Lilly in the weight loss drug market, with Lilly’s Zepbound already holding significant market share. Novo’s Wegovy pill aims to boost market share, with 88% of patients starting on the lowest dose. Despite Novo’s efforts, Lilly is preparing to launch a rival weight loss pill, orforglipron.
The weight loss segment accounted for over half of Novo’s sales in 2025, making the battle for U.S. market share crucial for the company. Lilly currently holds around 60% of the branded GLP-1 market globally, compared to Novo’s 39%. Novo hopes that the efficacy of its Wegovy pill will be a major selling point and help regain market share.
The GLP-1 market is facing significant price erosion, with prices coming down due to agreements with the Trump administration. Novo is cautiously optimistic about volume increases offsetting price declines. Analysts believe Novo is factoring in pricing pressures in its sales projections and is focused on accelerating volume uptakes amidst pricing headwinds. Wegovy has shown 15% weight loss in trials. Doustdar hopes for market acceptance of new product, Wegovy, competing with Zepbound. Novo plans to launch CagriSema this year, combining semaglutide and cagrilintide. CagriSema’s trial results were below expectations, but Novo defends its efficacy and plans for upcoming trials. Novo sees obesity and diabetes as unique conditions, aims to develop specialized therapies. Novo’s sales continue to grow, but future market trends are uncertain.
Read more at CNBC: Novo Nordisk faces defining year in the obesity drug market