Novo Nordisk (NOVOb.CO) shares surged 7.5% in early trading on Tuesday following the U.S. Food and Drug Administration’s approval of its oral weight-loss pill, Wegovy. The approval positions the Danish pharmaceutical company at the forefront of the rapidly expanding obesity treatment market, giving it a crucial first-mover advantage over competitors.

First-Mover Advantage in Obesity Treatment

With the FDA approval, Novo Nordisk aims to regain market share lost to Eli Lilly (LLY.N) in the competitive U.S. weight-loss drug segment. The company had previously faced supply challenges during the 2021 launch of its injectable Wegovy, but CEO Mike Doustdar assured investors that the company is now “better prepared” with sufficient supply to meet demand.

Seigerman of BMO Capital noted that the company will benefit from patients preferring the convenience of oral medication, though he cautioned that first-mover advantages could be temporary, as Eli Lilly’s oral drug, Orforglipron, is expected to receive approval in 2026.

Market Competition with Eli Lilly

Historically, Novo Nordisk led with injectable weight-loss drugs, but Eli Lilly’s Zepbound has overtaken it in weekly U.S. prescriptions. Analysts highlight that oral pills may expand the market rather than cannibalize injectable drugs, as 10% or more adults are hesitant to self-inject, according to Paul Major, Portfolio Manager at Bellevue Asset Management.

However, questions remain about the pills’ transformative potential, since oral medications tend to be less efficacious than injectables.

Strong Demand and Financial Outlook

Sydbank analyst Soren Lontoft Hansen estimates that global peak annual sales for the Wegovy pill could reach 24 billion Danish crowns ($3.79 billion). The launch is expected to offset potential headwinds in 2026, including price pressures on GLP-1 drugs.

Novo Nordisk’s shares, which have fallen more than 50% this year, became the largest gainers in Europe, while Eli Lilly’s Frankfurt-listed shares dipped 0.4%.

Conclusion: Novo Nordisk Reclaims Competitive Edge

The FDA approval of the Wegovy oral pill marks a significant milestone for Novo Nordisk, reinforcing its position in the lucrative weight-loss drug market. With strong demand, sufficient supply, and first-mover advantage, the company is well-placed to challenge rivals and recover market share, though ongoing competition from Eli Lilly and evolving pricing dynamics will remain key factors in 2026.