Two Pharma Stocks to Buy: Comparing Novo Nordisk and Amgen in 2026

When evaluating pharmaceutical stocks to buy, few matchups are as compelling as comparing two heavyweight healthcare innovators. Novo Nordisk and Amgen both represent strategic entry points into the pharmaceutical sector, yet they embody distinctly different growth philosophies. Both companies command large-cap positions, boast strong balance sheets, and have demonstrated the ability to turn scientific innovation into blockbuster medicines. They enjoy the tailwinds of steady global healthcare demand, robust pricing power, and substantial R&D budgets that extend product lifecycles and fuel new drug development. However, their paths forward diverge sharply—one chasing concentrated momentum in a single explosive market, the other spreading risk across multiple therapeutic domains.

Novo Nordisk: The GLP-1 Powerhouse and High-Growth Pharma Play

Novo Nordisk has emerged as the dominant force in the cardiometabolic treatment space, riding the wave of its semaglutide franchise. The company’s portfolio includes Ozempic (pre-filled pen formulation for type II diabetes), Rybelsus (the oral tablet variant), and Wegovy (for chronic weight management). These products are not just incremental improvements—they represent the company’s primary revenue engines.

As of Q3 2025, Novo Nordisk commanded an impressive 59% of the global GLP-1 volume market share, though this dominance faces mounting pressure. The company has aggressively expanded manufacturing capacity to maintain leadership in what may be the fastest-growing segment in modern pharmaceuticals. Beyond current products, Novo Nordisk is pursuing an ambitious label-expansion strategy. Rybelsus recently secured a landmark FDA approval as the first oral therapy reducing major adverse cardiovascular events in high-risk type II diabetes patients. Wegovy’s label now encompasses cardiovascular benefits, heart failure with preserved ejection fraction, and osteoarthritis indications. Ozempic remains uniquely positioned as the only GLP-1 approved for slowing kidney disease and reducing cardiovascular death.

The pipeline shows promise on multiple fronts. The FDA has green-lit a 25 mg oral semaglutide formulation for obesity and cardiovascular disease—a potential game-changer that could dramatically expand access beyond injectables. CagriSema, a next-generation follow-up to Wegovy, has entered the regulatory submission phase. The mid-stage asset amycretin demonstrated compelling weight-loss efficacy in phase II and is scheduled to advance to phase III trials in 2026. In rare diseases, the company has secured both EU and U.S. approvals for Alhemo in hemophilia treatment, while Wegovy recently earned accelerated FDA approval for MASH (metabolic dysfunction-associated fatty liver disease) with fibrosis.

However, this pharmaceutical stock faces significant headwinds. Recent sales of Ozempic and Wegovy disappointed expectations, weighed down by intensifying competition from Eli Lilly’s tirzepatide-based therapies (Mounjaro for diabetes and Zepbound for obesity) and the proliferation of compounded semaglutide alternatives in the U.S. market. These mounting pressures triggered two downward guidance revisions for 2025. In response, management announced a major restructuring program aimed at delivering approximately DKK 8 billion in annual cost savings by 2026, including workforce reductions. The company also negotiated a drug pricing agreement with the Trump administration, exchanging GLP-1 price concessions for Medicare access and a three-year tariff exemption on pharmaceutical imports.

Amgen: The Diversified Pharmaceutical Stock Built for Stability

Amgen presents a fundamentally different proposition for pharmaceutical stocks to buy. Rather than betting on a single market inflection, Amgen has constructed a genuinely diversified revenue engine spanning oncology, cardiovascular disease, inflammation, bone health, and rare disease markets. Established drugs like Evenity, Repatha, and Blincyto continue generating solid returns, while newer medicines including Tavneos and Tezspire are expanding the top line. The company’s biosimilar portfolio—including approved versions of Soliris and Stelara—is actively contributing to growth. Amgen is methodically pursuing label expansions for marketed drugs, systematically broadening their approved applications and expanding addressable patient populations.

The 2023 acquisition of Horizon Therapeutics represented a transformative move, significantly expanding Amgen’s rare disease footprint through additions like Tepezza, Krystexxa, and Uplizna. This rare disease franchise now provides both revenue diversification and insulation from single-market dynamics.

Amgen’s most consequential pipeline candidate is MariTide, a GIPR/GLP-1 receptor agonist positioned in the obesity market. Unlike current market leaders Wegovy and Zepbound, which require weekly injections, MariTide is being evaluated as a monthly treatment—a potentially significant differentiator that could reduce treatment burden and meaningfully improve patient adherence. The MARITIME phase III program has completed enrollment in two pivotal studies (MARITIME-1 and MARITIME-2) evaluating the candidate in obesity with or without concurrent type II diabetes. Two additional phase III studies, MARITIME-CV and MARITIME-HF, are actively enrolling participants to evaluate atherosclerotic cardiovascular disease and heart failure indications, respectively. Amgen has also initiated two additional phase III studies examining MariTide in obstructive sleep apnea. In clinical studies to date, the candidate has demonstrated predictable, sustained weight loss and meaningful improvements in cardiometabolic parameters.

Beyond obesity, Amgen’s pipeline includes several late-stage assets with significant commercial potential: bemarituzumab (first-line gastric cancer), rocatinlimab (eczema and prurigo nodularis), and olpasiran (atherosclerotic cardiovascular disease). The company is also advancing biosimilar versions of major oncology blockbusters—including versions of Bristol Myers’ Opdivo, Merck’s Keytruda, and Roche’s Ocrevus—through phase III studies.

Yet even Amgen confronts substantial headwinds. Patent expirations are eroding sales of best-selling drugs Prolia and Xgeva, which face generic competition in upcoming quarters. Pricing pressures and competitive intensity are compressing margins across multiple product categories, creating near-term margin challenges despite stable top-line growth.

The Investment Framework: Growth Concentration vs. Portfolio Diversification

For investors considering pharmaceutical stocks to buy, the core choice crystallizes into two distinct strategies. Novo Nordisk represents concentrated growth—a pharmaceutical company riding a single, explosive market with exceptional momentum but elevated single-market risk. Amgen epitomizes portfolio stability—a pharmaceutical enterprise spreading revenue across multiple therapeutic domains, supporting steadier cash generation but sacrificing upside concentration.

Financial Comparison: Valuation, Growth Estimates, and Momentum

Zacks Consensus Estimates reveal divergent growth trajectories. Novo Nordisk’s 2025 sales and earnings per share are projected to grow 13.72% and 8.84% year-over-year, respectively. However, EPS estimates for both 2025 and 2026 have trended downward over the past 60 days, reflecting market concerns about near-term execution. The downward revision pressure underscores investor skepticism about sustaining current growth rates amid competitive pressures.

Amgen’s 2025 sales and EPS are forecast to increase 8.78% and 7.21% year-over-year. Notably, Amgen’s EPS estimates have trended upward over the recent period for both 2025 and 2026, signaling improving market confidence in the company’s fundamentals and execution.

From a valuation perspective, Novo Nordisk currently trades at a 13.53 price-to-earnings multiple based on forward earnings, notably lower than Amgen’s 15.33 multiple. This apparent discount to Amgen reflects market concerns about NVO’s near-term challenges and execution risks.

Over the past six months, Novo Nordisk shares have declined sharply, while Amgen has delivered positive returns, substantially outperforming broader sector benchmarks. This performance divergence reflects differing investor sentiment: declining confidence in Novo Nordisk’s near-term trajectory and rising confidence in Amgen’s diversified model and steady execution.

The Verdict: Which Pharmaceutical Stock Aligns With Your Strategy?

Amgen emerges as the more prudent choice for investors seeking pharmaceutical stocks to buy in the current environment. The company carries a Zacks Rank of #3 (Hold), whereas Novo Nordisk holds a #5 (Strong Sell) designation—a meaningful differentiation in investment recommendation.

Novo Nordisk faces a confluence of near-term challenges: intensifying competition from Eli Lilly, the proliferation of compounded semaglutide alternatives eroding pricing power, two rounds of guidance reductions signaling execution challenges, and management transitions creating strategic uncertainty. Until the company demonstrates renewed market momentum, stabilizes market share against competitive encroachment, and proves that cost restructuring can meaningfully expand margins, risk management suggests reducing exposure to this pharmaceutical stock or exiting the position entirely.

Amgen stands as the superior choice for investors prioritizing stability and balanced risk-reward. Its business model—spanning multiple therapeutic areas—fundamentally reduces reliance on any single drug or market dynamic. This diversification supports more predictable cash generation and lowers downside risk. Rising earnings estimates signal improving fundamental momentum and better-than-expected execution. The company’s outperformance over recent months reflects justifiable investor confidence.

Looking forward, Amgen’s deep pipeline across multiple therapeutic areas, its expanding rare disease franchise, and its demonstrated ability to navigate generic competition position it as the more dependable pharmaceutical stock for the current cycle. For investors deciding between these two heavyweights, Amgen offers a substantially more attractive risk-reward profile in today’s pharmaceutical environment.