Novo Nordisk A/S

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Slightly Bullish +25

A drugmaker is gaining from the side effects of weight-loss drugs

AI-generated analysis

📈 Haleon launched a dedicated 'GLP-1 destination shelf' strategy at CVS Pharmacy to capture revenue from patients managing side effects of weight-loss drugs.

💰 The new retail approach delivered an average 24% sales lift per store during the first quarter of 2026 according to company data.

🤝 Haleon holds the majority of GLP-1 shelf space at CVS, with products on dedicated shelves performing better than those in standard aisles.

🚀 The company is actively discussing expanding this high-growth shelf-placement strategy to Walmart and Target retailers.

⚠️ CVS confirmed it is promoting its own store brands alongside Haleon's national brands, which could erode Haleon's pricing power over time.

💊 As newer oral GLP-1 pills replace injectable versions, side effects may become milder, potentially reducing the long-term need for Haleon's symptom-relief products.

📉 Haleon shares are down 8.86% for the year and trade well below their 52-week high of 416.10 GBX as investors weigh growth uncertainties.

👍 Eleven out of 17 analysts rate Haleon a Buy with an average 12-month price target of 420.24 GBX, citing the GLP-1 opportunity.

📉 Deutsche Bank maintains a Sell rating on Haleon with a 320 GBX target due to rising input costs and competition from store brands.

📊 CEO Brian McNamara reported that 73% of Haleon's portfolio gained or maintained market share during the first half of 2026.

Full Analysis
Haleon (HLN) is capitalizing on the side effects of GLP-1 weight-loss drugs, which are prescribed to millions of users including those taking Novo Nordisk's products. The company revealed a retail strategy on Sept. 16 involving dedicated 'GLP-1 destination shelves' at CVS Pharmacy to sell its Advil, TUMS, and Biotène brands for nausea, cramps, heartburn, and dry mouth. Early results indicate the strategy is effective, with Haleon reporting an average 24% sales lift per store during the first quarter of 2026. The company holds the majority of GLP-1 shelf space at CVS, noting that products on these dedicated shelves outperform those in regular aisles. CEO Brian McNamara highlighted a good first-half performance with sequential improvement in Q2 and a balanced price/volume mix. While the approach has succeeded at CVS, Haleon is exploring similar partnerships with Walmart and Target to expand its revenue driver. However, risks remain as CVS promotes its own store brands alongside Haleon's, potentially affecting pricing power, and newer oral GLP-1 pills may have milder side effects that could reduce demand for Haleon's symptom-relief products over time. Analysts are divided on the stock's outlook; 11 of 17 analysts rate Haleon a Buy with an average target of 420.24 GBX, while Deutsche Bank maintains a Sell rating citing rising input costs and competition from cheaper store brands. The company's shares have declined 8.86% year-to-date as investors remain cautious about growth outside the GLP-1 opportunity.