Novo Nordisk Warns of Profit Decline Amid US Price Pressure

Novo Nordisk Projects Significant Profit and Sales Decline

Novo Nordisk, the manufacturer of Wegovy, has issued a warning of a potential 5% to 13% decline in both adjusted operating profit and sales for 2026. This marks a significant shift after years of double-digit growth, driven by its popular weight-loss drugs.

Intensifying Market and Political Pressures

The company attributes the downbeat forecast to several factors. These include lower realized prices in the United States, partly due to pricing policies, fierce competition from rivals like Eli Lilly, and the expiration of patents for its key active ingredient, semaglutide, in some international markets.

Impact on the Stock Market

The announcement triggered a sharp market reaction, with Novo Nordisk's U.S.-listed shares falling by 12%. The negative sentiment extended to other companies in the obesity drug sector, as investor concerns grew over intensifying competition and pricing headwinds in the lucrative weight-loss market.

Outlook and Strategy

Despite the challenges, Novo Nordisk remains confident in its ability to drive future volume growth. The company is focusing on the U.S. launch of its new Wegovy pill to regain market momentum and navigate the increasingly competitive landscape.

FAQ

Q: Why is Novo Nordisk's profit expected to fall?
A: The company projects a decline due to U.S. price pressure, increased competition from other drugmakers, and expiring patents on its key products.

Q: How did the market react to Novo Nordisk's announcement?
A: The company's U.S.-listed shares dropped 12%, and shares of competing pharmaceutical firms also declined due to concerns about the sector.

Source: Investing.com