Novo Nordisk shares plunge on forecast for sales decline

Shares of Novo Nordisk A/S plunged after the company surprised investors with a forecast pointing to a sharp drop in sales, underscoring the growing intensity of price competition in the obesity drug market.

The company said on Tuesday that sales could fall by as much as 13% this year, News.Az reports, citing Bloomberg.

It cited pressure from lower prices for its blockbuster weight-loss treatments, driven in part by efforts by the US government to rein in drug costs, as a key factor behind the expected decline.

Novo’s shares fell as much as 20% in early trading in Copenhagen, marking their steepest intraday drop since July and erasing earlier gains recorded this year.

The warning highlights intensifying competition in the rapidly expanding weight-loss drug sector, where Novo is battling for market share against Eli Lilly & Co. as well as telehealth firms offering cheaper copycat versions of popular treatments. It also reflects broader pressure on pharmaceutical companies from President Donald Trump to reduce medication costs for American consumers.

In November, the Trump administration announced significant price cuts for Novo’s best-selling drugs Ozempic and Wegovy sold through Medicare, the federal health insurance program for older Americans. Those discounted prices are set to take effect in 2027.

Novo last reported a decline in annual sales in 2017, during a price war over insulin in the United States. The company is now facing competition on several fronts, with Eli Lilly’s Zepbound gaining leadership in the US market and generic versions of Ozempic expected to appear in international markets later this year.

News.Az 

By Nijat Babayev