Novo Nordisk’s shares fell 1.7% in the latest session, continuing a broader correction that saw the stock lose roughly 40% of its value in 2025 before rallying 22% so far in 2026. At current multiples near 18 times projected earnings, the stock trades well below its decade-long average price-to-earnings ratio of 27. With consensus estimates of DKK 23 per share in net income for the year, investors could see meaningful upside should valuation norms reassert themselves.

The company’s FDA approval and January launch of an oral formulation of Wegovy generated over 18,000 prescriptions in its first week, expanding an addressable market estimated at 85 million U.S. adults. Label expansions for subcutaneous Wegovy in new patient segments and the upcoming introduction of CagriSema—a long-acting GLP-1/GIP co-agonist—provide a multi-pronged growth runway that may offset slowing demand for established injectables.

Restructuring initiatives front-loaded in Q3 are set to deliver approximately DKK 1 billion of cost savings in Q4, positioning the quarter for an earnings beat against conservative forecasts. Integration of a Catalent fill-finish facility is on track to double U.S. injectable production capacity by mid-2026, alleviating bottlenecks and supporting margin expansion as volumes ramp.

Fourth-quarter results will hinge on sales momentum for Ozempic and Wegovy amid increased competition and guidance headwinds. However, sustained uptake of the Wegovy pill and the anticipated approval of CagriSema could drive sequential revenue growth. Assuming stable operating leverage and a return to mid-20s P/E multiples, the stock could appreciate by up to 40% over the next 12 months if management executes on its commercial and supply chain initiatives.