Novo Nordisk A/S (NVO) shares experienced a sharp pre-market plunge of 5.11% on Wednesday, reflecting investor dismay following the company's disappointing financial forecast for the year ahead.
The Danish pharmaceutical giant, renowned for its blockbuster weight-loss drug Wegovy and diabetes treatment Ozempic, warned that adjusted sales and operating profit for 2026 could fall by between 5% and 13%. This outlook was significantly weaker than analyst expectations, which had anticipated only a modest decline. The company cited heavy pricing pressure as a primary headwind, specifically pointing to a recent agreement with the U.S. government to lower drug prices for Americans.
Furthermore, management highlighted an increasingly competitive landscape in the lucrative obesity drug market, with rival Eli Lilly posing a significant challenge. Additional pressures include the expiration of patents for semaglutide—the active ingredient in Wegovy and Ozempic—in certain international markets, and the persistent issue of compounded, lower-cost copycat versions of its medications circulating in the U.S. This guidance marks a potential end to years of double-digit growth for the firm, overshadowing a reportedly strong initial launch for its new Wegovy pill.
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