Novo Nordisk Faces Turbulence Amid U.S. Drug Pricing Pressure

Novo Nordisk shares fell significantly due to pressure from U.S. President Donald Trump to cut drug prices, and competition from copycat versions of its weight-loss drug Wegovy. Recent setbacks have brought significant market losses, raising investor concerns over future growth and influence in the obesity market.

Novo Nordisk's shares tumbled by 6% on Friday, later regaining some losses, but adding to a series of declines that have jeopardized gains since the introduction of Wegovy, their innovative weight-loss drug.

The downturn follows letters from U.S. President Donald Trump, urging pharmaceutical firms to reduce U.S. drug prices. This week, Novo adjusted its 2025 sales forecast due to competition from substitute versions of Wegovy, causing their stock to drop by 23% on Tuesday.

After hitting a peak last year, Novo Nordisk's current market valuation stands at $214.5 billion, down from $650 billion. Market pressures, notably in the U.S., exacerbate challenges for Novo as they navigate complex healthcare systems and competitive landscapes.

(With inputs from agencies.)