Novo Nordisk has had a rough couple of years, selling off due to losing GLP-1 market share to Eli Lilly and weak guidance implying a revenue decline this year. Despite the headwinds, there is still a solid case for the stock. They have a century of clinical data in diabetes to guide their obesity drug pipeline. They also already have the specialized manufacturing infrastructure needed to produce GLP-1 drugs at scale, which is a major hurdle for competitors. Revenue growth is expected to bounce back next year with pipeline progress, including new drugs like CagriSema that are currently under review. Valuation-wise, NVO is trading at a 10.4x forward P/E compared to the healthcare sector average of 17.8x.