Novo Nordisk Faces Unprecedented Pricing Pressure, Sees Declining Sales

Novo Nordisk experienced a steep decline in its share price, dropping by up to 20%, as the company projected unprecedented price pressures for 2026. This grim forecast follows guidance of a potential 13% drop in sales and profits for the year, driven by increased competition and drug cost-cutting initiatives.

CEO Mike Doustdar expressed concern over the "painful" short-term financial impact but remained hopeful for long-term investment benefits. The obesity drug market's competitive nature has intensified, challenging Novo's ability to sustain the rapid growth rates it once enjoyed.

A highlight amid the challenges is the promising sales of Novo's Wegovy pill, despite lower overall revenue expectations. The company faces additional hurdles with patent expirations and compounded drug alternatives, yet weekly prescriptions for oral Wegovy have shown strong performance in early 2023.