Novo Nordisk Shares Signal Potential Rebound After Steep Decline

Following a punishing 2025 that saw its market capitalization nearly halve, pharmaceutical giant Novo Nordisk is showing early signs of a potential recovery as 6 begins. Two critical developments—a favorable court ruling in China and the U.S. launch of a next-generation product—are providing the foundation for what investors hope will be a sustained turnaround.

The company is taking strategic offensive action with the commercial rollout in the United States. After securing FDA approval late last year, Novo Nordisk has now begun selling an oral tablet version of its Wegovy treatment. This new format presents a significant competitive edge by eliminating the need for daily injections. Clinical trial data indicates it facilitates an average weight loss of 16.6 percent.

This launch grants the Danish firm a lead time estimated at two to three months before competing products, such as Eli Lilly's anticipated Orforglipron, are expected to enter the market. Priced aggressively at $149 per month, the oral Wegovy is positioned to target the broader consumer market.

Valuation Presents a Contrast to Competitive Pressures

The dramatic share price contraction over the past twelve months, which erased approximately 48 percent of the stock's value, has resulted in a fundamentally cheaper valuation. The equity closed the recent week at €44.61.
* The price-to-earnings (P/E) ratio now stands near 14.15, well below its historical average of around 22.50.
* This valuation also sits at a discount to the broader healthcare sector average of 18.4.

Should investors sell immediately? Or is it worth buying Novo Nordisk?

Despite this apparent value, the competitive landscape remains intensely challenging. Rival Eli Lilly has recently captured market share at a faster pace with its product Zepbound. While Novo Nordisk reported growth of 12 percent in the third quarter of 2025, Lilly's revenue from Zepbound surged by 185 percent over the same period.

Legal Victory Strengthens Long-Term Position

A major catalyst for the current stabilization originates from Asia. China's Supreme People's Court has upheld the patent validity for the active ingredient semaglutide. This ruling is critical for Novo Nordisk as it fortifies the company's defensive "moat" against generic competition. Semaglutide forms the basis for the blockbuster drugs Wegovy and Ozempic; a loss of patent protection would have opened the door widely for copycat versions. Market analysts view this decision as a pivotal step toward securing long-term revenue in the crucial Chinese market.

For a durable reversal of fortune to take hold, the new oral medications must now rapidly generate measurable sales. Investor attention in the coming weeks will be squarely fixed on the execution of the U.S. launch and the first-quarter sales figures. Although the clarified patent situation and depressed valuation provide a base, the ultimate success of the new tablet will determine whether the prolonged downtrend has truly been broken.