Novo Nordisk Faces Investor Backlash Amid Bleak Forecast and Rising Competition

Novo Nordisk, the Danish leader in obesity drugs, faces potential investor backlash as it presents a pessimistic outlook for 2026. The company forewarns a significant drop in profits and sales, largely due to intensifying market competition and US pricing pressures. Recent strong sales of the Wegovy pill offer some optimism.

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.

(With inputs from agencies.)