Novo Nordisk Shares Tumble Amidst U.S. Price-Cut Pressure

Shares of Novo Nordisk plunged after the company faced competition from copycat drugs and pressure from U.S. President Donald Trump to lower prices. This drop erased most gains from its successful weight-loss drug, Wegovy. Novo appointed Maziar Mike Doustdar as CEO amidst declining shares.

Novo Nordisk shares dropped drastically, hitting their lowest point since August 2021, primarily due to pressure from U.S. President Donald Trump urging pharmaceutical companies to reduce drug prices. This pressure intensified after Trump's call to 17 major firms, impacting the entire sector.

Amidst this turmoil, Novo Nordisk revised its 2025 sales growth forecast, citing increased competition from copycat versions of its weight-loss treatment, Wegovy. The company's decision to appoint Maziar Mike Doustdar as CEO resulted in a significant one-day share drop of 23%.

Novo Nordisk, once Europe's most valuable listed firm, faces daunting challenges in maintaining its leading position in the obesity drug sector. The overall fall in Novo Nordisk shares by more than two-thirds since last year reflects investor anxiety, intensified by Trump's pricing intervention and increased market competition.

(With inputs from agencies.)