Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTReuben Gregg Brewer, The Motley FoolTue, September 22, 2026 at 10:35 PM GMT+2 4 min readIn some ways, Novo Nordisk (NYSE: NVO) clearly has an image problem. It effectively created the GLP-1 weight-loss drug market when it launched Wegovy. But it quickly lost the lead in this emerging niche to competitor Eli Lilly (NYSE: LLY). Now, Novo Nordisk has a chance to make a comeback as it launches a pill version of its GLP-1 drug. As it undertakes this effort, the company has chosen to rebrand, an odd decision at such a critical time. Here's what may be going on.Novo Nordisk: When a name change isn't really a name changeThe key sentence in the company's announcement about its name change is this one: "As part of this, we will embrace the shorthand 'Novo' as our day-to-day name, while Novo Nordisk A/S remains our legal global company name." So the company isn't really changing its name; it is simply changing its branding.Missed AI's "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we're only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »Image source: Getty Images.It is more of a refresh than a reset, which isn't necessarily a bad thing. After all, Novo Nordisk fumbled in the GLP-1 weight-loss space after it got an early lead. And some of the problems it faced were self-inflicted, noting that it couldn't keep up with demand. That allowed generic competitors to copy its product earlier than would normally have happened. When Eli Lilly's weight-loss drugs proved more effective than Wegovy, Novo Nordisk's early lead evaporated, and it became the also-ran.Investors reacted by selling the stock, which is down 70% from its 2024 high, as of this writing. What's interesting is that Novo Nordisk remains a highly profitable pharmaceutical company. And it offers an attractive, well-covered 4.1% dividend yield. There are some good reasons to consider buying it, noting that the stock's roughly 11x price-to-earnings ratio is well below its five-year average P/E of roughly 25x and Eli Lilly's P/E of nearly 39x.Perception is part of the problem, but not the only problemBut investors are a fickle bunch, and being number two is a problem. This is why Novo Nordisk is working so hard to make its Wegovy pill a success. As with its GLP-1 shot, Novo Nordisk was first to market with a GLP-1 pill. But this time, it is better prepared to meet demand. And, in fact, it is directly courting demand by focusing on selling its Wegovy pill at a low price point.That's a near-term problem, however, because it will hamper the healthcare company's profitability. The long-term goal is for volume to more than offset the lower price, which is a solid and likely achievable goal. Only Wall Street tends to have a myopic focus on the here and now, so the company isn't likely to gain traction with investors until there's concrete evidence that this approach is working. That could take a little while.Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info