This article first appeared on GuruFocus.
Novo Nordisk (NYSE:NVO), the Danish pharmaceutical giant behind Ozempic and Wegovy, edged nearly 2% higher during Friday’s U.S. regular session after a federal judge threw out an antitrust lawsuit against Novo and Eli Lilly (NYSE:LLY). According to Reuters, the case was filed by Strive Specialties, which claimed the drugmakers unfairly limited access to compounded GLP-1 weight-loss drugs through exclusive telehealth partnerships.
The ruling removes one legal headache, but it is far from the final chapter. The judge dismissed Strive’s complaint in its current form rather than ending the broader fight over compounded obesity drugs, leaving the door open for an amended complaint or an appeal. For investors, the lawsuit was never the main event anyway. The real battle is whether Novo can protect its blockbuster GLP-1 franchise as Lilly keeps turning up the competitive heat.
Novo Nordisk Stock Rises After GLP-1 Antitrust Win · us.finance.gurufocus
The valuation may be the bigger story. The accompanying GF Value chart estimates Novo’s fair value at $110.54, while the stock changes hands around $46.86, putting it roughly 57.6% below that estimate. That discount suggests Wall Street has already baked plenty of pessimism into the shares after concerns over slowing obesity-drug momentum and pipeline execution. If management can deliver on its upgraded outlook and prove demand remains strong, today’s beaten-down valuation could look overly harsh. Still, investors should think twice before treating the gap as a guaranteed bargain because even deeply discounted stocks can stay cheap if business fundamentals fail to improve.