Novo-Nordisk A/S (NVO) shares plummeted 5.02% during intraday trading on Wednesday, extending a sharp decline from the previous session.
The sell-off was triggered by the Danish pharmaceutical giant's weaker-than-expected financial guidance for 2026. The company warned that adjusted sales and operating profit could decline between 5% and 13% this year, a steeper drop than analysts had anticipated. Management cited "unprecedented pricing pressure" in the United States for its blockbuster weight-loss drugs Wegovy and Ozempic as a primary headwind.
This pricing pressure stems from a recent agreement with the U.S. government to lower drug costs for Americans, part of the "Most Favored Nation" policy initiatives. Additionally, Novo Nordisk faces intensifying competition from rival Eli Lilly in the lucrative obesity drug market, patent expirations for its key drug ingredient semaglutide in certain international markets, and the persistent challenge of compounded, lower-cost copycat versions of its medications circulating in the U.S. The disappointing outlook overshadowed a strong initial launch for its new Wegovy pill and better-than-expected fourth-quarter 2025 results.
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