Novo Nordisk\u00a0NVO and Amgen AMGN are both global healthcare heavyweights with the scale, financial strength and research depth needed to turn scientific innovation into blockbuster drugs. Each company has built a reputation for durable franchises, strong pricing power and steady demand across critical treatment areas, making both stocks compelling long-term plays in the pharma sector.<\/p>\n
Novo Nordisk is widely recognized as the market leader in the GLP-1 space, marketing its semaglutide drugs under brand names Ozempic (pre-filled pen and oral tablet) and Rybelsus (oral tablet) for type II diabetes (T2D), and Wegovy (injection and pill) for chronic weight management. Amgen, meanwhile, brings a more diversified portfolio across oncology, cardiovascular (CV) disease, inflammation, bone health and rare disease markets. It has some key pipeline assets, with a focus on the lead obesity candidate, MariTide.<\/p>\n
That sets up a strong head-to-head debate: should investors favor Novo Nordisk\u2019s concentrated exposure to the fast-growing GLP-1 market, or Amgen\u2019s broader, more balanced biotech model with income-friendly characteristics? For investors weighing growth, resilience and risk, this pharma faceoff offers a timely look at two very different paths to long-term returns.<\/p>\n
Let’s examine the fundamentals of the two stocks to make a prudent choice.<\/p>\n
The Case for NVO Stock <\/p>\n
Novo Nordisk has achieved tremendous success in the cardiometabolic treatment space, driven primarily by Ozempic, Rybelsus and Wegovy. As of 2025-end, Novo Nordisk remained the market leader with a total GLP-1 volume market share of 54.6% globally across diabetes and obesity care.<\/p>\n
Novo Nordisk is pursuing new indications for its semaglutide drugs, including CV and other indications. In 2025, Rybelsus became\u00a0the first oral therapy approved in the United States\u00a0to lower the risk of major adverse CV events in high-risk T2D patients, regardless of prior CV history. Wegovy\u2019s label includes CV, HFpEF and osteoarthritis indications, while Ozempic remains the only GLP-1 approved to slow kidney disease and reduce CV death in patients with diabetes. Higher-dose Wegovy injections have been approved in the United States and the EU, expanding its portfolio and enabling the company to tailor treatment options better to meet the diverse needs and preferences of obesity patients. NVO is also seeking to expand Ozempic\u2019s label to include peripheral artery disease.<\/p>\n
In late December, the FDA also approved NVO\u2019s 25 mg oral semaglutide (Wegovy pill) for obesity and CV disease, which was subsequently launched in early January. The FDA recently approved an oral version of Ozempic (1.5 mg, 4 mg and 9 mg) for adult T2D patients, which was subsequently launched in the United States. A supplemental application for a higher 25 mg tablet is also under review, with a regulatory decision expected by the end of 2026. Novo Nordisk also intends to seek regulatory approval for both Rybelsus and oral Ozempic in children and adolescents aged 10 to 17 years with T2D in the United States and the EU in the second half of 2026.<\/p>\n
Novo Nordisk is advancing its next-generation obesity pipeline. It has submitted a regulatory filing seeking the approval of CagriSema injection, a follow-up drug to Wegovy, for obesity. Meanwhile, its mid-stage asset, amycretin, has shown strong weight-loss efficacy in a phase II study and is slated to enter phase III soon. The company has bolstered its pipeline through several major collaborations and acquisition deals.<\/p>\n
Beyond GLP-1s, NVO is building its Rare Disease franchise, advancing Mim8 in hemophilia A, and securing both EU and U.S. approvals for Alhemo to treat hemophilia A and B, with or without inhibitors. Meanwhile, the FDA has granted accelerated approval for Wegovy in treating MASH with fibrosis. Novo Nordisk and rival Eli Lilly LLY have also introduced multiple price cuts in response to pressure from the U.S. government during 2025 and 2026 to improve patient access to GLP-1 medicines.<\/p>\n
Despite the recent wins, Novo Nordisk is far from being out of the woods yet. It has been facing increasing competition from Eli Lilly, which markets its tirzepatide (GLP-1) medicines as Mounjaro for T2D and Zepbound for obesity. Despite being on the market for just over three years, these drugs have become LLY\u2019s key top-line drivers. Lilly recently secured FDA approval of its oral GLP-1 drug, orforglipron, for adults with obesity or overweight with weight-related medical problems, marketed under the brand name Foundayo. The drug competes directly with NVO\u2019s Wegovy pill.<\/p>\n
Although Novo Nordisk\u2019s post-first-quarter guidance raise offered some reassurance, the bigger picture remains cautious \u2014 management still expects both sales and operating profit to decline in 2026, underscoring weak core momentum and mounting structural challenges. The modestly improved outlook reflects stronger GLP-1 demand, broader adoption of obesity treatments and ongoing Wegovy launches. However, these positives are being offset by U.S. pricing pressure, softer injectable GLP-1 prescription trends, reduced Medicaid obesity coverage, intensifying competition from Eli Lilly, \u201cMost Favored Nation\u201d pricing agreement, gradual semaglutide exclusivity losses in select markets and elevated spending on R&D, manufacturing and commercial expansion.<\/p>\n
The Case for AMGN Stock <\/p>\n
Amgen\u2019s diverse portfolio and global reach position it well in a changing pharma landscape. Key medicines like Repatha, Evenity and Blincyto, as well as newer medicines like Tavneos, Tezspire, and Imdelltra, are driving sales, more than offsetting declining revenues from oncology biosimilars and mature products like Enbrel. New biosimilar launches are also contributing to top-line growth.<\/p>\n
The 2023 acquisition of Horizon Therapeutics has significantly expanded Amgen’s rare disease business by adding several rare disease drugs, including Tepezza, Krystexxa and Uplizna, to its portfolio. Amgen is also pursuing label expansions for its marketed drugs to broaden their approved uses and expand the addressable patient population. Approval for the expanded use of these drugs can potentially drive further top-line growth.<\/p>\n
Amgen\u2019s key pipeline candidate is MariTide, a GIPR\/GLP-1 receptor, which is being evaluated for T2D, obesity and obesity-related conditions as part of its comprehensive MARITIME phase III program. Amgen has nine global phase III studies underway with MariTide in obesity, and other obesity-related conditions like obstructive sleep apnea, cardiovascular disease and heart failure. Three phase III studies of MariTide in T2D will be initiated in 2026.<\/p>\n
Unlike the currently marketed obesity drugs like\u00a0Eli Lilly\u2019s Zepbound and\u00a0Novo Nordisk\u2019s Wegovy, which require weekly injections, MariTide is being tested for monthly dosing. A less frequent dosing regimen is expected to reduce treatment burden and thereby boost patient adherence. In prior clinical studies, the candidate has shown predictable and sustained weight loss and a meaningful impact on cardiometabolic parameters.<\/p>\n
Beyond obesity, Amgen has promising late-stage pipeline drugs across several therapeutic areas, which represent significant commercial potential. These include olpasiran (for atherosclerotic CV disease), xaluritamig (metastatic castrate-resistant prostate cancer), daxdilimab (primary discoid lupus erythematosus) and dazodalibep (Sj\u00f6gren\u2019s disease).<\/p>\n
Amgen also boasts a strong biosimilars portfolio, which includes Bekemv (biosimilar of AstraZeneca\u2019s Soliris), Wezlana (J&J\u2019s Stelara) and Pavblu (Regeneron\u2019s Eylea). It is also developing biosimilar versions of blockbuster oncology drugs like Bristol Myers\u2019 Opdivo, Merck\u2019s Keytruda and Roche\u2019s Ocrevus in phase III studies.<\/p>\n
However, pricing headwinds and competitive pressure are negatively impacting the sales of many products. Sales of best-selling drugs, Prolia and Xgeva, are expected to decline in the upcoming quarters due to generic erosion following the loss of patent protection.<\/p>\n
How Do Estimates Compare for NVO & AMGN? <\/p>\n
The Zacks Consensus Estimate for Novo Nordisk\u2019s 2026 sales and earnings per share (EPS) implies a year-over-year decline of around 3.6% and 12.6%, respectively. EPS estimates for 2026 have been trending upward over the past 30 days, while those for 2027 also show improvement over the same period.<\/p>\n
NVO Estimate Movement Zacks Investment Research <\/p>\n
Image Source: Zacks Investment Research<\/p>\n
The Zacks Consensus Estimate for Amgen\u2019s 2026 sales and EPS implies a year-over-year increase of 3% and 1.7%, respectively. AMGN\u2019s EPS estimates have been trending upward over the past 30 days for both 2026 and 2027.<\/p>\n
AMGN Estimate Movement Zacks Investment Research <\/p>\n
Image Source: Zacks Investment Research<\/p>\n
Price Performance and Valuation of NVO & AMGN <\/p>\n
Year to date, shares of NVO have lost 13.1%, while those of AMGN have gained 2.7%. In comparison, the\u00a0industry\u00a0has returned 2.3%, as seen in the chart below.<\/p>\n
Zacks Investment Research <\/p>\n
Image Source: Zacks Investment Research<\/p>\n
From a valuation standpoint, Amgen is more expensive than Novo Nordisk, going by the price\/earnings ratio. NVO\u2019s shares currently trade at 12.80 times forward earnings, lower than 14.76 for AMGN.<\/p>\n
Zacks Investment Research <\/p>\n
Image Source: Zacks Investment Research<\/p>\n
NVO vs. AMGN: Which Stock Holds the Edge? <\/p>\n
Novo Nordisk and Amgen carry a Zacks Rank #3 (Hold) each at present, which makes choosing one stock a difficult task. You can see\u00a0the complete list of today\u2019s Zacks #1 Rank (Strong Buy) stocks here.<\/p>\n
However, Amgen currently looks like the better pick, supported by a more diversified business across several therapeutic areas. This broader revenue base offers greater resilience than Novo Nordisk\u2019s more concentrated GLP-1-driven model. At the same time, Amgen still has meaningful exposure to the high-growth obesity market through its investigational candidate, MariTide. If successfully developed and approved, MariTide could allow Amgen to penetrate a massive obesity market opportunity while differentiating itself from weekly injectable therapies.<\/p>\n
By contrast, Novo Nordisk remains the GLP-1 market leader, but its dominance is increasingly under pressure from Eli Lilly and other biotech players developing next-generation obesity drugs, including Amgen. NVO also faces serious operational and execution risks, including pricing pressure, softer prescription trends, reduced coverage, manufacturing and commercial spending needs, and gradual exclusivity losses in select markets. These challenges cloud near-term visibility, making it prudent for investors to avoid NVO until a clearer recovery path emerges.<\/p>\n
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report<\/a><\/p>\n Novo Nordisk A\/S (NVO) : Free Stock Analysis Report<\/a><\/p>\n Eli Lilly and Company (LLY) : Free Stock Analysis Report<\/a><\/p>\n Amgen Inc. (AMGN) : Free Stock Analysis Report<\/a><\/p>\n This article originally published on Zacks Investment Research (zacks.com).<\/a><\/p>\n