Think Novo Nordisk Can't Keep Up in the GLP-1 Market? Its Latest Drug Approval Could Be a Game Changer

By David Jagielski, CPA – Mar 24, 2026 at 8:56AM ESTKey PointsRegulators recently approved Wegovy HD, which is a higher-dose version of its popular weight loss drug.Wegovy HD helped people lose 20.7%, on average, in a clinical trial.The new drug could help Novo Nordisk win back some market share in the GLP-1 market.Novo Nordisk (NVO +0.60%) stock has fallen 28% this year as investors fear that it's falling behind in the competitive GLP-1 market. The company still has some incredible blockbuster drugs in its portfolio, including Ozempic and Wegovy, but it expects its revenue to decline this year as a result of rising competition. Recently, however, the company received some great news from regulators, with the approval of a higher-dose version of Wegovy, which it will simply call Wegovy HD. While it may seem like a small success for the healthcare company, here's why it can be a significant game changer and lead to much better growth for the business, in both the short term and the long term. Image source: Getty Images. Wegovy HD helped people lose more weight Earlier this month, the Food and Drug Administration approved Wegovy HD, which is a higher-dose (7.2 mg) version of Wegovy. Up until now, the highest dose available was 2.4 mg. What's promising is that the weight loss achieved with Wegovy HD is more effective and can help the company better compete against its rival, Eli Lilly. Using Wegovy HD, people lost an average of 20.7% of their body weight in a clinical trial. While that's still less than the 22.5% that patients lose with Eli Lilly's Zepbound, the difference is far smaller than the regular dose of Wegovy, which averages around 15%. By bridging the gap, the decision to use one drug over another may no longer be about sheer weight loss potential but instead about which is more tolerable, and that can vary significantly from one person to the next.

For Novo Nordisk, this puts it in a more competitive position and, thus, can help it win back market share and generate better numbers. Earlier this year, it unveiled a troubling forecast, which called for revenue to decline by as much as 13% in 2026. ExpandNYSE: NVONovo NordiskToday's Change(0.60%) $0.22Current Price$37.04Key Data PointsMarket Cap$124BDay's Range$36.55 - $37.0552wk Range$35.85 - $81.44Volume288KAvg Vol24MGross Margin80.90%Dividend Yield4.69% Novo Nordisk's stock still looks undervalued Despite the good news for the company with the approval of Wegovy HD, there remains plenty of bearishness around Novo Nordisk's stock. It's trading around its 52-week low, and its price-to-earnings ratio is just over 10, which suggests investors are discounting it heavily due to the uncertainty and risk ahead. But with Wegovy HD, the company looks to be in far better shape than it was prior to the drug's approval. For long-term investors, now can be an optimal time to add the stock to your portfolio. There's some solid value with Novo Nordisk stock. Its valuation is low, and it also pays a high dividend that yields just over 5%. This is a fairly underrated and undervalued stock right now, which could possess tremendous upside down the road.Read NextMar 20, 2026 •By David Jagielski, CPADown Near Its 5-Year Low, Is Novo Nordisk Stock Too Cheap to Pass Up?Mar 19, 2026 •By Prosper Junior Bakiny1 Reason I'm Never Selling Novo Nordisk StockMar 17, 2026 •By David Jagielski, CPAThis Promising GLP-1 Drug Could Give Novo Nordisk Investors Renewed Hope for the StockMar 16, 2026 •By David Jagielski, CPAWhy the Novo Nordisk and Hims & Hers Deal Is a Win for Both StocksMar 12, 2026 •By Prosper Junior BakinyDoes This Deal Make Novo Nordisk Stock a Buy?Mar 9, 2026 •By David Jagielski, CPANovo Nordisk Is Slashing Prices for Ozempic and Wegovy. Here's Why That Might End Up Helping the StockAbout the AuthorDavid Jagielski, CPA, has been a contributing Motley Fool stock market analyst covering healthcare, consumer staples, consumer discretionary, and technology stocks since 2017. David has more than 10 years of experience in finance roles across businesses of different sizes and sectors. He holds a Certified Public Accountant designation in Canada.TMFdjagielskiStocks MentionedNovo NordiskNYSE: NVO$37.02(+0.54%)+$0.20Eli LillyNYSE: LLY$902.04(-0.94%)-$8.51*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.