Novo Nordisk Is a Strong Buy After the 2025 Pullback

Novo Nordisk A/S (NVO) is entering a defining phase as shifting market dynamics, breakthrough clinical data, and global expansion efforts converge to reshape its long-term trajectory. The stock price has declined more than 50% from its record high in 2024 and is now approaching a critical support zone.

Despite challenges from tariffs, rising competition, and market saturation, the company continues to invest in innovation and expand internationally. This article provides a fundamental and technical outlook to help understand the next move in Novo Nordisk. It is found that the stock is approaching an attractive long-term entry point for investors in 2025.

Novo Nordisk’s Growth Catalysts Signal Continued Market Leadership

Novo Nordisk received a major boost from real-world data supporting Wegovy’s heart benefits. In the STEER study, Wegovy reduced the risk of heart attack, stroke, or death by 57% compared to Eli Lilly’s (LLY) Zepbound in patients who remained on treatment. This advantage makes Wegovy the only GLP-1 drug with proven cardiovascular protection in obese patients without diabetes. The findings clearly set it apart in the rapidly growing weight-loss drug market.

Moreover, Wegovy showed a 29% risk reduction even among patients with treatment gaps. This highlights its durability in real-world outcomes and strengthens physician confidence in semaglutide-based therapies. The results, presented at the European Society of Cardiology Congress, have reinforced Novo’s clinical leadership. With cardiovascular risks common in obesity, this added benefit could drive broader prescribing and payer support in the US and EU.

Additional data from the SELECT, SOUL, and STRIDE studies further support the GLP-1 platform. Ozempic and Rybelsus demonstrated improved heart and metabolic health in patients with type 2 diabetes. Novo also presented new findings on the role of inflammation in cardiovascular disease. These studies reinforce its leadership in cardiometabolic care and strengthen the company’s long-term pipeline.

However, Novo faces external challenges. Specifically, Denmark lowered its 2025 growth forecast, citing pressure on the pharmaceutical sector and weakening prospects for key exporters like Novo Nordisk. In addition, the increase in competition, market saturation, and US tariffs has weighed on expectations. Furthermore, the company itself recently cut its sales and profit outlook, citing slower GLP-1 growth and persistent use of compounded alternatives in the US.

Despite these headwinds, the STEER study results provide a strong counterbalance. Real-world evidence of cardiovascular protection gives Wegovy a valuable advantage in the crowded obesity market. This catalyst could reignite demand, offset competitive threats, and support long-term global expansion.

Novo Nordisk Delivers Robust Financials with Global Sales Momentum

Profits Surge as Novo Nordisk Maintains Strong Operational Performance

Novo Nordisk shows strong and consistent profitability. The chart below shows steady growth in revenue and net income over the past two decades. Revenue surged to $11.68 billion in Q2 2025, while net income reached $4.03 billion.

This rising trend highlights efficient cost management and robust demand for its products. The widening gap between revenue and income also reflects improving margins and strong operational performance.

Moreover, the operating profit increased by 25%, with the operating margin at 43.55%. The sales showed robust growth, driven by strong demand in both the US and international markets. These results highlight the company’s ability to expand revenue while maintaining profitability.

International Momentum and Therapeutic Innovation Drive Novo Sales

The company shows balanced sales growth across regions. The US remains the largest market, contributing over 80 billion DKK in sales with 17% growth. Moreover, the international operations followed closely with 19% growth, driven by strong momentum in EUCAN, Emerging Markets, and APAC.

It is observed that the obesity care and GLP-1 diabetes segments led growth in both regions. This broad-based expansion highlights the strength of Novo Nordisk’s global reach and product diversity.

On the other hand, the obesity care posted the highest growth at 58%, with international operations up 125%. GLP-1 diabetes also performed well, rising 10% overall. Insulin sales declined slightly outside the US, but grew 17% inside the US.

Moreover, the rare disease sales showed steady growth, particularly in the US. This mix shows a clear shift toward high-growth obesity and GLP-1 therapies, confirming that Novo Nordisk’s strategic focus is paying off.

Novo Nordisk expects modest growth in the second half of 2025. The company lowered its sales and operating profit outlook due to slower-than-expected market expansion and rising competition in GLP-1 treatments.

Despite these challenges, it continues to invest in obesity and diabetes products, advance its R&D pipeline, and expand Wegovy globally. The new CEO, Mike Doustdar, will focus on building momentum and capturing key opportunities in obesity and diabetes care.

Technical Trends Show Novo Nordisk Near a Major Buy Zone

Converging Supports Signal Long-Term Bottom Formation

Novo Nordisk has experienced a strong price rally over the past few years, reaching a record high of $148.15 in 2024. After hitting this peak, the stock declined through Q3 and Q4 2024, followed by a sharper drop in 2025. However, the recent correction is now approaching key long-term support levels, signaling a potential lifetime buying opportunity.

A major support area aligns with the long-term trendline drawn from the 2008 lows. This trendline is now approaching the $30 level, a historically significant zone. In addition, the Fibonacci retracement from the 2016 low to the 2024 high shows that the 78.6% retracement level lies near $44. This confluence of technical supports reinforces the importance of the current price region.

The stock has recently started to rebound after hitting this key support zone, as highlighted by the black circle on the chart. Consequently, this suggests that the bottoming process may already be underway.

On the quarterly chart, three major levels could help define the bottom: the 61.8% Fibonacci retracement near $66, the 78.6% retracement around $44, and the long-term trendline support at $30.

Notably, the strong rebound in Q3 2025 from the $44 zone supports the case for a bullish reversal. If momentum continues, Novo Nordisk’s stock is likely to rebound sharply from this region, thereby marking a new phase of long-term recovery.

Novo Nordisk Enters High-Conviction Buy Zone on Long-Term Chart

Despite the strong correction in 2024 and 2025, the log chart for Novo Nordisk shows that this pullback was necessary. The stock had reached the upper resistance of the ascending channel in 2024, making a correction inevitable.

The chart now reveals a key buy zone at the lower support angle of the ascending channel. This area is highlighted in the red zone in the quarterly chart below. This red zone marks a strong long-term buying region. Interestingly, the stock has approached this red zone in Q3 2025, signaling a potential entry point for long-term investors.

If the $30 support level holds, the technical structure suggests a strong bottom formation. The rebound from this zone is emerging as a powerful buy signal on the long-term chart. Given the strength of this support, a sustained recovery could drive Novo Nordisk’s stock above the $200 region over the next few years.

Key Technical Reversals Signal Buying Opportunity in Novo Nordisk

To better understand the strong buying opportunity in Novo Nordisk, the monthly chart below highlights the persistent bearish pressure on the stock since 2024. This selling pressure followed a sharp parabolic rally from the 2016 lows to the 2024 highs.

Most of the gains from that parabolic move have now been erased, and the price is approaching a key support region between $41 and $30. This zone has historically acted as a major demand area, making it an attractive range for long-term investors.

Notably, the August candle formed a strong key reversal pattern. If the $45 low holds, it may signal the end of the bearish phase and the beginning of a new uptrend. A breakout above $70 would confirm the bottom and trigger a strong bullish move in Novo Nordisk’s stock.

The short-term price action can be observed through the descending channel pattern on the weekly chart below. It shows that the stock has been trading within this channel and is setting up for its next move. Now, the price has approached the red zone, between the $45 to $60 region, and is forming a key reversal candle on the weekly chart. This reversal candle signals a potential shift in momentum.

Market Risks for Novo Nordisk

Novo Nordisk faces rising competition in the GLP-1 space. The competitors are aggressively expanding their own obesity treatments. In the US, the continued use of compounded alternatives is pressuring branded drug demand. These market dynamics are slowing sales growth and threatening Novo’s leadership in weight-loss therapies.

Moreover, the macroeconomic conditions are adding more challenges. The government of Denmark cited weaker pharmaceutical exports and falling global demand for Danish products. US tariffs on European goods and tightening trade conditions further weigh on Novo’s international performance. These external pressures could limit future earnings growth.

Moreover, the regulatory risks also remain significant. GLP-1 drugs face intense scrutiny due to their widespread use and high costs. If reimbursement policies tighten in key markets, demand could decline sharply. Additionally, any safety concerns arising from long-term use may impact physician confidence.

Conclusion: Why Novo Nordisk Remains a Strong Long-Term Buy

Novo Nordisk remains a global leader in obesity and diabetes care. The STEER study results and broader clinical data have cemented its scientific edge. These catalysts support strong growth potential, even as the market becomes more competitive.

Financially, the company has delivered strong performance over the past few decades. Sustained profitability growth reflects consistent product demand across key markets. The leadership transition and ongoing R&D investments signal a clear path forward for continued expansion.

From a technical perspective, the stock has declined over 50% since its 2024 peak. Despite this drop, it remains within a structurally bullish trend. The key long-term support zone lies between $44 and $30, where a strong rally is likely to emerge.

The sharp rebound from the 78.6% Fibonacci retracement level in Q3 2025 suggests the stock is forming a bottom and positioning for renewed growth. Therefore, investors can consider buying the stock at current levels and look to add more positions if the price drops toward the $40–$30 region.