This Promising GLP-1 Drug Could Give Novo Nordisk Investors Renewed Hope for the Stock

By David Jagielski, CPA – Mar 17, 2026 at 10:30AM ESTKey PointsUBT251 is a drug that Novo Nordisk is developing with a Chinese company.It's a triple agonist drug that averaged nearly 20% weight loss over a 24-week trial.Improved growth prospects could give Novo Nordisk's beaten-down stock plenty of room to rise higher.It's been a tough year for Novo Nordisk (NVO 0.13%) stock, to say the least. The company has undergone a change in CEO, its share price has been cut in half, and it has also slashed its guidance for the year due to rising competition in the GLP-1 drug market. Things have been spiraling for the stock, as it has been difficult to build up much of a bullish case for the company of late. It's easy, however, for the market to get overly bearish on a stock, crippling its valuation in the process.

But Novo Nordisk is an innovative company, one that's continually looking for ways to get bigger and to grow its business. It also has a promising GLP-1 drug that could bolster its growth prospects in the not-too-distant future. Image source: Getty Images. The company's triple agonist drug averaged nearly 20% weight loss after just 24 weeks Last month, Novo Nordisk announced that a drug that it is developing with a Chinese company, The United Laboratories International Holdings Limited, had demonstrated some impressive results in a phase 2 trial. The drug, UBT251, helped people lose an average of 19.7% of their body weight after using it for 24 weeks. It is a triple agonist drug that targets multiple hormone receptors: GLP-1, GIP, and glucagon.

Rival Eli Lilly is also developing a triple agonist drug, retatrutide, which in a recent trial achieved an average weight loss of 28.7%, but that was after a period of 68 weeks. If UBT251 can bridge the gap over a longer duration, it could give investors some renewed optimism about Novo Nordisk's growth potential in the GLP-1 space. ExpandNYSE: NVONovo NordiskToday's Change(-0.13%) $-0.05Current Price$38.53Key Data PointsMarket Cap$130BDay's Range$38.44 - $39.2752wk Range$35.85 - $82.57Volume260KAvg Vol24MGross Margin80.90%Dividend Yield4.48% Why Novo Nordisk may be an underrated buy right now There's been bad news after bad news that's been piling up on Novo Nordisk's stock in recent months. Investors have effectively been throwing in the towel on the healthcare stock, and analysts have been downgrading their price targets along the way. But at the end of the day, this is still a top healthcare business, one that generates strong margins and that has excellent products in its portfolio. It may be facing some challenges, but it can and likely will bounce back, as it continues to work on developing new drugs. For investors who take a chance on Novo Nordisk today, the rewards could be significant down the road. That's because the stock trades at just 11 times its trailing earnings, which is far below the S&P 500 average of 24. As a result, buying Novo Nordisk stock today could end up being a steal of a deal for long-term investors. Read NextMar 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 StockMar 9, 2026 •By Travis HoiumHims & Hers Stock Pops 40%: Everything You Need to KnowMar 8, 2026 •By Prosper Junior BakinyBetter Weight Loss Stock: Novo Nordisk Vs. AmgenMar 7, 2026 •By Prosper Junior BakinyCan This Next-Gen Obesity Drug Save Novo Nordisk?About 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$38.51(-0.19%)-$0.08Eli LillyNYSE: LLY$938.27(-5.14%)-$50.85*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.