Novo Nordisk faces a perfect storm as its shares plummeted another 4.3% on Friday, extending a dramatic decline triggered by profit warnings for its blockbuster drugs Ozempic and Wegovy. The Danish pharmaceutical giant is losing market share to rivals like Eli Lilly, whose competing weight-loss drug Zepbound is gaining traction in the U.S. Compounding the crisis, a new demand from former U.S. President Donald Trump has rattled the sector: major drugmakers, including Novo Nordisk, must ensure lower prices for low-income patients within 60 days. The announcement sent shockwaves through markets, with AstraZeneca and GlaxoSmithKline also shedding value. Analysts remain skeptical about the feasibility of Trump’s plan but acknowledge the growing pressure on Novo Nordisk to stabilize its position.
Investor Confidence Erodes as Forecasts Slashed
Once Europe’s most valuable company, Novo Nordisk now expects significantly weaker revenue growth for 2025—just 8-14%, down from earlier projections. Barclays and JPMorgan have slashed price targets, citing a lack of near-term recovery potential. The stock has nosedived over 30% since late July, erasing billions in market value. With Wegovy’s U.S. performance faltering and Trump’s pricing demands looming, Novo Nordisk’s leadership faces an uphill battle to restore investor trust. The weight-loss drug boom that once propelled the company has turned into a costly reckoning.
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