Novo Nordisk faced a significant setback, unsettling investors just as the company appeared to be on the mend. The pharmaceutical giant surprised the market with a pre-release of its 2026 forecast, which indicated a decline in both sales and operating profit by 5% to 13%. This announcement led to a dramatic 17% drop in the company’s stock on Wednesday in Copenhagen, erasing much of the stock’s gains achieved earlier this year.
CEO Mike Doustdar discussed the ramifications of lower pricing for Wegovy, Novo’s leading weight loss drug, particularly in the U.S. market, in an interview with CNBC. He cautioned investors to anticipate further declines before recovery, stating, “People should expect that it goes down before it comes back up.” The guidance was a stark contrast to analysts’ expectations, prompting Barclays to caution that this could represent a “kitchen sink” strategy, though the firm noted similar predictions the previous year did not materialize.
The company’s struggles are partly attributed to increased competition and pricing pressures in its biggest market, the U.S. In particular, compounding pharmacies are offering lower-cost alternatives to semaglutide, the active ingredient in both Wegovy and Ozempic, posing a challenge to Novo’s market position. Additionally, rival Eli Lilly continues to exert competitive pressure.
Despite earlier optimism surrounding the U.S. launch of the Wegovy pill, Doustdar reflected on the initial success, revealing that the uptake exceeded expectations, with 170,000 people on the pill within just four weeks of its introduction. However, he noted that any positive early performance is overshadowed by pricing impacts on existing business.
As discussions of Novo’s future unfold, analysts ponder whether the company will experience a rapid rebound like a “Nike swoosh” or a more sluggish “U-shaped recovery.” The company’s recent history adds complexity to this prediction: 2025 was notable for being Novo’s worst year on record, with shares plummeting nearly 50%. This tumultuous period culminated in a leadership shakeup, as Novo appointed its first non-Danish CEO and restructured its board, indicating a strategic pivot amid ongoing challenges.
Last year also included a landmark agreement with the Trump administration aimed at reducing drug prices for Medicare and Medicaid, allowing consumers to access enhanced pricing options directly. With the new Wegovy pill priced at $149, it significantly undercuts the previous injectable version.
Compounding these challenges are impending patent expirations in certain international markets anticipated in 2026, which are projected to further affect revenue. Adding to the leadership turmoil, U.S. chief David Moore, pivotal in the Wegovy launch, announced his departure for personal reasons, with Jamie Miller stepping in from UnitedHealth Group.
When questioned about whether Novo Nordisk is in crisis, Doustdar firmly denied the notion, asserting that while the challenges faced in 2025 significantly impacted performance and share price, they have concurrently fostered resilience within the organization.
