The stock price of Novo Nordisk dropped by 6% on Friday as the market reaction to its weight loss drug Wegovy led to a potential loss of all gains achieved since 2021.
The stock price declined by 23% during the week after Novo Nordisk reduced its 2025 sales projections because of increasing competition from Wegovy compound versions and announced a new CEO. The company has lost its position in the STOXX 600 top 10 and its market value has decreased by more than two-thirds from $650 billion to $214.5 billion.
The market reaction to political pressure is also evident. President Trump sent letters to 17 major drug firms including Novo Nordisk to request lower prices in the U.S. market which increases the possibility of regulatory or pricing interventions. Novo Nordisk maintained its dedication to affordable access but failed to provide specific details about its plans.
The market reaction to Trump’s statements combined with competition from Eli Lilly and generic drugmakers creates increased investor uncertainty according to analysts. The U.S. obesity market has undergone a price adjustment and Trump’s actions present significant risks according to Nordnet analyst Per Hansen.
The company’s U.S. market segment remains its largest but recent price pressures and order cancellations have made the situation worse. The European healthcare index declined by 1% because of industry-wide concerns about pricing capabilities in the sector.
