Novo Nordisk vs. Viking: Which Obesity Drug Stock Is the Better Buy?

Novo Nordisk NVO and Viking Therapeutics VKTX are both riding on the powerful growth trend in obesity care, a market expected to expand significantly as demand for effective weight-loss treatments continues to rise. While NVO has already established itself as a leader with blockbuster GLP-1 therapi…

Novo Nordisk NVO and Viking Therapeutics VKTX are both riding on the powerful growth trend in obesity care, a market expected to expand significantly as demand for effective weight-loss treatments continues to rise. While NVO has already established itself as a leader with blockbuster GLP-1 therapies, VKTX is developing promising next-generation obesity drugs that could emerge as strong competitors if they succeed in late-stage development and commercialization.

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 and cardiovascular (CV) risk reduction.

On the other hand, Viking Therapeutics is a clinical-stage biotech firm. Its investigational dual GIP and GLP-1 receptor agonist, VK2735, has shown blockbuster potential in early to mid-stage studies for treating obesity.

The comparison also highlights the contrast between an established pharmaceutical giant and a high-risk, high-reward biotech. NVO offers investors a proven commercial franchise, consistent cash flows and global scale, while VKTX provides exposure to the potential upside of a clinical-stage innovator with a pipeline that has attracted significant investor attention. Together, they represent two distinct ways to invest in the rapidly evolving obesity treatment market.

Let's examine the fundamentals of the two stocks to make a prudent choice.

The Case for NVO Stock

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.

Novo Nordisk is pursuing new indications for its semaglutide drugs, including CV and other indications. In 2025, Rybelsus became the first oral therapy approved in the United States to lower the risk of major adverse CV events in high-risk T2D patients, regardless of prior CV history. Wegovy’s 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 better tailor treatment options to the diverse needs and preferences of patients with obesity. NVO is also seeking to expand Ozempic’s label to include peripheral artery disease.

In late December, the FDA approved NVO’s 25 mg oral semaglutide (Wegovy pill) for obesity and CV disease, which was subsequently launched in early January. Since launch, the pill has already surpassed three million prescriptions, suggesting solid traction. A regulatory filing for the Wegovy pill is also currently under review in the EU. The FDA recently approved oral Ozempic (1.5 mg, 4 mg, and 9 mg) for adult patients with T2D, 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.

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.

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.

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’s 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’s Wegovy pill.

Although Novo Nordisk’s post-first-quarter guidance raise offered some reassurance, the bigger picture remains cautious — 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, “Most Favored Nation” pricing agreement, gradual semaglutide exclusivity losses in select markets and elevated spending on R&D, manufacturing and commercial expansion.

The Case for VKTX Stock

Viking Therapeutics is one of the few biotech stocks that have shown immense potential in the obesity space. Its lead experimental obesity drug and primary value driver, VK2735, a dual GLP-1/GIP receptor agonist, has delivered encouraging efficacy across both subcutaneous (SC) and oral formulations, positioning it as one of the more promising late-stage obesity therapies currently under development.

Last year, Viking Therapeutics started a late-stage program evaluating VK2735 SC for adults with obesity across two phase III studies — VANQUISH-1 and VANQUISH-2. While VANQUISH-1 is evaluating the candidate in obese adults with at least one weight-related co-morbid condition and without T2D, VANQUISH-2 is assessing its efficacy in obese or overweight adults with T2D. While VANQUISH-1 finished enrolment last year with about 4,500 patients, VANQUISH-2 recently completed enrolment with about 1,000 patients. However, data from both phase III studies are not expected until 2027. Additionally, VKTX is on track to initiate late-stage studies of the oral formulation of VK2735 later in 2026.

Viking Therapeutics is also gearing up to report data from the ongoing maintenance dosing study. This study is evaluating multiple regimens — including monthly SC, weekly oral and daily oral dosing — to determine whether the weight loss achieved with weekly SC administration can be maintained over the long term. Viking Therapeutics expects to report SC maintenance data in the third quarter of 2026, followed by oral maintenance data in the first half of 2027.

Viking Therapeutics recently advanced a second obesity drug candidate, VK3019, into a phase I clinical study. The study will evaluate the investigational dual amylin and calcitonin receptor agonist in healthy volunteers, assessing its safety, tolerability and pharmacological profile. The move broadens VKTX’s obesity pipeline beyond VK2735.

Unlike VK2735, VK3019 is designed to activate amylin and calcitonin receptors, potentially enabling use as both a standalone therapy and in combination with existing weight-loss drugs. A more diversified pipeline could enhance Viking Therapeutics’ long-term growth prospects in obesity.

Yet, VKTX’s biggest challenge lies in its lack of an approved product in its portfolio and the intense competition from pharma giants that already dominate the obesity landscape.

How Do Estimates Compare for NVO & VKTX?

The Zacks Consensus Estimate for Novo Nordisk’s 2026 sales and earnings per share (EPS) implies a year-over-year decline of around 2.45% and 13.64%, respectively. EPS estimates for 2026 have been trending upward over the past 60 days, while those for 2027 also show improvement over the same period.

NVO Estimate Movement

Devoid of a marketed product, we expect Viking Therapeutics’ 2026 loss per share to widen by 47.34%. Loss estimates for 2026 and 2027 have widened over the past 60 days.

VKTX Estimate Movement

Price Performance and Valuation of NVO & VKTX

Year to date, shares of NVO have lost 5.5%, while those of VKTX have gained 8.2%. In comparison, the industry has returned 11.7%, as seen in the chart below.

From a valuation standpoint, Viking Therapeutics is more expensive than Novo Nordisk, going by the price/book (P/B) ratio. VKTX’s shares currently trade at 8.8 times trailing book value, higher than 6.75 for NVO.

NVO vs. VKTX: Which Stock Holds the Edge?

Novo Nordisk and Viking Therapeutics currently carry a Zacks Rank #3 (Hold) each at present, which makes a clear winner difficult to determine. However, from the point of view of a better pick, Novo Nordisk is undoubtedly the way to go.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Viking Therapeutics offers compelling long-term upside, driven by the promising clinical profile of VK2735 and the expansion of its obesity pipeline with VK3019. However, the company remains a clinical-stage biotech with no approved products, making its investment case heavily dependent on the success of late-stage studies and regulatory approvals in an increasingly competitive obesity market.

Novo Nordisk, despite near-term headwinds from pricing pressure and intensifying competition, remains the stronger investment choice. Its established portfolio of blockbuster GLP-1 medicines, continued label expansions that broaden the eligible patient population, ongoing regulatory filings for new indications and formulations and a diversified late-stage pipeline provide multiple growth drivers. Combined with its proven commercial execution and global scale, these strengths make NVO the better pick for investors seeking a more balanced risk-reward profile.

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