Novo Nordisk’s U.S. shares experienced a sharp decline on Tuesday, plummeting 14% after the company issued a forecast indicating a decrease in sales and profit growth for the year. This downturn is attributed to a combination of factors, including reduced pricing in the U.S. and the impending loss of exclusivity for its popular medications, Wegovy and Ozempic, in markets such as China, Brazil, and Canada. The stock’s slide followed a trading halt and occurred shortly after the company disclosed its earnings results after the close of markets in Copenhagen.
For the year 2026, the Danish pharmaceutical giant anticipates a decline in both sales and operating profit, projecting decreases of between 5% and 13% at constant exchange rates. This outlook arrives at a time when Novo Nordisk is striving to reclaim its position in the increasingly competitive weight-loss sector.
CEO Mike Doustdar stated, “In 2026, Novo Nordisk will face pricing headwinds in an increasingly competitive market.” However, he expressed optimism regarding the initial reception of Wegovy’s oral formulation in the U.S. market, raising hopes for future volume growth. Despite challenges expected in the U.S., Novo Nordisk also noted prospects for sales growth in international markets.
The company reported a 10% increase in sales and a 6% rise in operating profit for 2025, aligning with previously revised guidance. Novo Nordisk is planning to expand its Wegovy presence into more markets in 2026, alongside introducing a higher 7.2 mg dose in select regions.
As competition heats up, the company is counting on the oral version of Wegovy and its next-generation weight-loss treatment, CagriSema, to regain market share in the U.S. The previous year saw Novo’s stock tumble by 46.5%, a result of multiple guidance revisions, changes in leadership, and increasing competition. Although recent efforts have led to a modest recovery, significant scrutiny remains regarding how Novo Nordisk will perform in light of competing products – particularly as rival Eli Lilly prepares to launch its own weight loss pill early in 2026.
Market observers are closely monitoring that dynamic, as well as how Novo positions itself in direct-to-patient sales channels, especially given the widening gap with Lilly in these areas during 2025.
Analysts have noted that the active ingredient in both Wegovy and Ozempic, semaglutide, is set to lose exclusivity in several countries in 2026, thereby adding further pricing pressures. Market forecasts indicate that sales growth may moderate to single digits this year, compared to prior years of higher growth.
Barclays analyst James Gordon highlighted that while guidance cuts may lead to investor concerns, they could also create a “clearing event” for the company’s outlook. Positive developments associated with the U.S. launch of Oral Wegovy and the potential for increased volume from Injectable Wegovy could attract renewed investor interest.
Over the past 18 months, Novo Nordisk has faced substantial competitive pressure, primarily from Eli Lilly’s tirzepatide – a treatment recognized for yielding more significant weight loss results and capturing a larger share of the U.S. market. As the landscape continues to evolve, Novo’s forthcoming strategies will be pivotal in determining its future in a rapidly changing pharmacological environment.
