Novo Nordisk stock surges on hopes Wegovy pill approval will deliver some ‘redemption’ for investors

Novo Nordisk shares received a much-needed end of the year boost as the Wegovy maker became the first drugmaker to secure approval of a GLP-1 pill for weight loss, in what one analyst called a “redemption for the investors” after the stock’s worst year ever.

The U.S. Food and Drug Administration’s approval of Novo Nordisk’s GLP-1 pill gives the Danish pharmaceutical giant a head start over U.S. rival Eli Lilly, which has also filed for FDA approval for its oral weight loss drug orforglipron.

“As the first oral GLP-1 treatment for people living with overweight or obesity, the Wegovy pill provides patients with a new, convenient treatment option that can help patients start or continue their weight loss journey,” said Novo CEO Mike Doustdar in a statement late Monday.

Shares were last seen trading 7.8% higher.

Novo plans to launch oral Wegovy, or “Wegovy-in-a-pill,” in the U.S. – by far its largest market– in early January 2026. The company has also submitted the pill for approval to the European Medicines Agency (EMA) and other regulatory authorities.

Wegovy’s starting dose of 1.5 milligrams will be available in pharmacies and via select telehealth providers with savings offers for $149 per month, Novo said.

Cash-paying patients can access it for the same price via President Donald Trump’s direct-to-consumer website, TrumpRx, according to the deal Novo Nordisk struck with his administration last month. Drug pricing has been top of mind this year as the U.S. looks to reduce the costs paid by consumers.

Redemption for investors?

The approval caps a turbulent year for Novo, which has been marked by multiple guidance cuts, mass layoffs, dramatic leadership shakeups, and a high-profile public bidding war against U.S. rival Pfizer.

Novo’s latest news “is a redemption for the investors,” Danish Jyske Bank analyst Henrik Hallengreen Laustsen told CNBC, especially after a year in which shares halved in value as confidence faltered in Novo’s ability to compete with Eli Lilly and others.

“A welcome ‘Christmas gift’ for Novo investors — and for patients as New Year weight-loss resolutions typically kick in — given that Novo expects to launch the product in early January 2026,” Hallengreen Laustsen said.

“The Wegovy pill represents a key growth driver over the coming years and a critical competitive tool versus Eli Lilly, which is expected to receive approval for its oral obesity drug in March–April 2026,” he said, adding that the Wegovy pill’s approval covers both weight management and reducing the risk of adverse cardiovascular events such as strokes and heart attacks.