Novo Nordisk stock sharply tanked this week, marking the pharmaceutical company’s worst-ever weekly loss with a decline of more than 30% by Friday.
This plunge extended the stock to its lowest point since August 2021, erasing nearly all gains made since the launch of its blockbuster weight-loss drug Wegovy.
Not long ago, the company was riding high, thanks to the massive success of drugs like Wegovy and Ozempic.
But now, it’s staring down a tough road. Sales projections have taken a hit, competitors are closing in, and US regulators are turning up the heat.
The sudden turn of events has rattled investors and sparked serious concerns about whether the company can hold onto its lead in an industry that’s changing fast.
Novo Nordisk stock: What’s behind the sharp drop?
On July 29, the company announced a significant revision to its full-year 2025 sales growth outlook, lowering the projected range from 13–21% to 8–14%.
Profit expectations took a hit, too. Operating income growth was revised down from 16–24% to a new range of just 10–16%.
The downgrade followed disappointing sales figures for its flagship drugs, Ozempic and Wegovy, which are increasingly feeling the pressure from growing competition, particularly in the US market.
Novo Nordisk is also struggling against growing competition from compounded or generic versions of Wegovy and competing GLP-1 drugs like Eli Lilly’s products.
The persistent use of unsafe compounded GLP-1s and counterfeit semaglutide products in the US is undermining Wegovy’s uptake.
Additionally, slower market expansion and tougher reimbursement scenarios have dampened sales growth.
These factors point to a recalibration of the obesity medication market and heightened challenges within the US, Novo Nordisk’s largest market.
Investors were already on edge when Novo Nordisk announced Maziar Mike Doustdar would take over as CEO on August 7, 2025, and the timing couldn’t have been worse.
His appointment came on the heels of a sharp cut in the company’s sales forecast, amplifying concerns and sending the stock even lower.
The leadership change follows the earlier departure of former CEO Lars Fruergaard Jørgensen, who was pushed out as doubts grew over the company’s ability to stay ahead in an increasingly competitive and fast-moving market.
What analysts say?
Analysts have a cautious view on Novo Nordisk’s stock following the company’s recent sales forecast cut and leadership change.
Bank of America downgraded the stock to “Neutral,” citing an “uncertain path to recovery for Wegovy and Ozempic” and growth headwinds from patent expiries, US pricing pressures, and competition from Eli Lilly’s drugs.
Nordnet analysts pointed to investor panic over potential further downgrades amid US market challenges and political pressure on drug prices.
MarketBeat data shows a consensus rating around “Hold,” with a target price near $93.67. Of 19 analysts tracked, seven recommend strong buy, nine hold, and one moderate sell.
The post Novo Nordisk stock posts worst week since 2021, but analysts see a bigger problem ahead appeared first on Invezz
