Novo Nordisk’s Wegovy Pill Launch Impresses Investors, but Citi Remains Cautious Over Price Pressure
Novo Nordisk’s Wegovy Pill Launch Impresses Investors, but Citi Remains Cautious Over Price Pressure
Novo Nordisk has drawn fresh attention from analysts after a stronger-than-expected first-quarter performance, helped by the early success of its oral GLP-1 weight-loss treatment, the Wegovy pill. However, Citi has kept a neutral rating on the stock despite raising its target price to DKK290.
According to Proactive Investors, Citi increased its price target after modestly upgrading long-term earnings expectations for 2027 to 2031 by around 2% to 3%. The upgrade was mainly driven by stronger forecasts for the Wegovy pill, which has shown encouraging early demand.
Wegovy Pill Launch Shows Strong Early Momentum
The Wegovy pill has become a key focus for Novo Nordisk because it offers a more convenient oral option in the fast-growing obesity treatment market. Unlike injectable GLP-1 medicines, a pill could appeal to patients who are uncomfortable with injections or want a simpler treatment routine.
Citi’s estimate for full-year 2026 Wegovy pill sales now stands at $2.7 billion, above company consensus of $1.7 billion. Its peak sales forecast is also higher, at $8 billion compared with consensus expectations of $7.1 billion.
Novo Nordisk’s own investor materials show that Wegovy pill prescriptions have passed more than two million since launch, highlighting the scale of early uptake in the US market.
Citi Raises Target but Keeps Neutral Rating
Despite the stronger pill launch, Citi has not turned bullish. The bank kept its neutral stance because it remains concerned about pricing pressure across Novo Nordisk’s portfolio.
Citi expects portfolio price erosion to affect both sales and margins, especially in diabetes treatments. It also warned that long-term competition in obesity drugs remains uncertain as rival companies continue to develop new GLP-1 and weight-loss products.
The bank left its 2026 earnings-per-share forecast unchanged after cutting its sales estimate by 4% and operating income estimate by 7% in constant currency terms.
Competition in Obesity Drugs Remains Intense
The obesity drug market has become one of the most important battlegrounds in global pharmaceuticals. Novo Nordisk faces competition from Eli Lilly and other companies developing oral and injectable treatments.
Citi noted that Novo’s injectable Wegovy continues to show volume growth, while the launch of rival Foundayo has not yet appeared to damage Novo’s momentum. Still, the bank believes the market could become more difficult as pricing, access, and competition evolve over the next several years.
Amycretin Adds to Novo Nordisk’s Pipeline Story
Another positive point for Novo Nordisk is the progress of oral zenagamtide, also known as amycretin. Citi said Novo’s messaging around the acceleration of amycretin into phase three trials was well judged.
This pipeline progress matters because investors are looking beyond Wegovy and Ozempic. They want to know whether Novo Nordisk can keep leading the next generation of weight-loss and metabolic medicines.
Why Investors Are Still Watching Closely
The main issue is not whether Novo Nordisk has strong products. The company clearly has powerful brands in obesity and diabetes care. The bigger question is whether future sales growth can remain strong while prices come under pressure.
For now, the Wegovy pill has given Novo Nordisk a fresh growth story. But Citi’s cautious view shows that analysts still want clearer evidence that the company can protect margins, defend market share, and manage pricing challenges over the long term.
Overall, Novo Nordisk’s first-quarter update was encouraging, especially because of the strong Wegovy pill launch. However, Citi’s neutral rating suggests that the market may need more proof before fully pricing in a stronger long-term outlook.
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