Shares in Wegovy maker Novo Nordisk continued to slide on Wednesday as analysts warned of persistent competition from copycat drugs in the U.S., a day after a profit warning and the naming of a new CEO prompted investors to wipe $70 billion off the drugmaker's value.
Novo Nordisk's sharp selloff is an overreaction; long-term fundamentals remain solid despite lowered guidance and a sudden CEO change. US market headwinds, competitive pressure from Eli Lilly and telehealth, and regulatory loopholes are weighing on near-term growth. Novo Nordisk boasts a robust pipeline with promising obesity and diabetes drugs, including oral Wegovy and next-generation therapies.
Novo Nordisk A/S shares plunged after a Q2 revenue update and 2025 guidance downgrade, despite strong double-digit sales and profit growth. The market is concerned about headwinds for semaglutide (Wegovy/Ozempic), including supply issues, competition, and regulatory risks. Despite the selloff, I believe Novo remains undervalued given its dominant GLP-1 franchise, robust pipeline, and long-term growth potential.
Novo, which became Europe's most valuable listed company following the launch of Wegovy in 2021, is now facing a reckoning as it looks to turn things around after the abrupt removal in May of CEO Lars Fruergaard Jorgensen.
Key Points in This Article: Novo Nordisk's (NVO) operations update reported 18% sales and 29% operating profit growth for H1 2025, but one-off adjustments inflated results.
Novo Nordisk will release its Q2 earnings report on Aug. 6.
Pharma giant Novo Nordisk A/S (NYSE:NVO) is plunging 21% to trade at a nearly three-year low of $54.27, after the company's surprise cut to its full-year guidance due to a lower sales outlook for several drugs.
Shares of Danish pharmaceutical giant Novo Nordisk (NYSE: NVO), behind the weight-loss drug Wegovy and diabetes medication Ozempic, tumbled on Tuesday after the company slashed its full-year 2025 guidance, triggering a sharp sell-off from investors.
Shares of Novo Nordisk skidded on Tuesday as the Danish drugmaker reduced its expectations on wildly popular drugs Ozempic and Wegovy.
The drugmaker unexpectedly cuts its full-year guidance, citing lower sales expectations for its blockbuster drugs Wegovy and Ozempic in the U.S. market.
The pharmaceutical giant said multiple entities were still marketing and selling unbranded versions of its drug despite U.S. regulators ordering an end to the practice.
Danish pharmaceutical giant Novo Nordisk on Tuesday cuts its full-year sales and profit guidance.