Novo Nordisk Faces Investor Backlash Amid Bleak Forecast and Rising Competition

Novo Nordisk, the renowned Danish producer of obesity drugs, is bracing for investor scrutiny following a more pessimistic outlook for 2026 than anticipated. The company cautioned that its profits and sales could decline by up to 13% this year due to significant pricing pressures from the United States and increased market competition.

Following the announcement, which came after European markets closed, Novo's U.S.-listed depository receipts plummeted nearly 15%, undermining earlier gains boosted by the strong performance of its Wegovy pill. Many investors were caught off guard, expecting only a mid-single-digit decline in sales and profits.

Novo Nordisk faces challenges from rival pharmaceutical companies seeing increased competition in the obesity treatment market. Despite a promising start with Wegovy, CEO Mike Doustdar emphasized the need for innovative strategies to reach more patients amidst these changing market conditions.